Ducking The AMT

IBD ^ | December 5, 2007

[Kaslin]

Taxes: For a supposed lame duck, President Bush has managed to shield the country from the Democratic Congress' price of new taxes to stop the alternative minimum tax. Standing for principle works wonders.

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High-ranking Democrats in Congress seem to have come to the conclusion that, as Elvis might have put it, you can knock middle-class taxpayers down, step in their face, slander their names all over the place. Just don't step on their blue suede tax-refund checks.

The Treasury Department has warned that the longer Congress delays fixing the AMT, the later some $75 billion in refunds, averaging thousands of dollars per family, will arrive in mailboxes.

This oddest of taxes, originally passed nearly 40 years ago to prevent a tiny handful of tycoons from using loopholes to avoid taxes, is now set to hit 25 million taxpayers.

Democrats in recent years have embraced it as the one tax they would cut or kill, since it tends to hit residents of high-tax, Democratic-leaning states the hardest. But in becoming such ardent foes of the AMT, they set themselves up for being trumped by the White House.

[saganite]

This is one of the dumbest taxes ever devised. You’re punished for living in a high tax state where salaries are typically higher and so are real estate taxes etc. I’m glad I don’t live in NJ ot NY even though I expect the AMT will hit me this year.

[svcw]

OK I am really confused, is this tax gone, reduced or the same?
I thought I just read the hairy reed would not bring it to the floor for a vote, so it was dead.

[AbeKrieger]

An illuminating lesson in the art of politics: Even "lame ducks" can make quite a splash when they refuse to give in on their beliefs.

God bless W for standing his ground on tax hikes. I wish his heart would turn on closing our borders and rejecting amnesty in all its evil iterations.

[Citizen Tom Paine]

There is an old management principle. You can do anything to a person that you want, just don’t touch his wallet. The same principle works with taxes to a certain extent. IMHO.

[EVO X]

OK I am really confused, is this tax gone, reduced or the same?

From CNN Money

Without a patch, the 2007 exemption amounts will fall to $45,000 for joint filers and $33,750 for single filers.

[svcw]

Please explain “patch”.
I have run a ruff estimate on a tax program and we will be hit with amt this year because of a single once in a life time event which makes the amt add an extra 5K to our income tax due. I am still screaming about this.
Anyway, I am confuse about whether its is gone or reduced or nothing.

[keat]

It’s in place right now.

[keat]

It’s in place right now.

[rabscuttle385]

This oddest of taxes, originally passed nearly 40 years ago to prevent a tiny handful of tycoons from using loopholes to avoid taxes, is now set to hit 25 million taxpayers.

And yet the guys at the top still manage to find loopholes, while the folks in the middle are getting eaten alive.

Ahh, the irony.

If our Senators and Representatives had any brains to speak of, they would simplify the tax laws, stop trying to socially engineer America using deductions and credits, reduce the rates across the board, and cut wasteful and needless Federal spending. However, given the current state of the monster that is our Government, I don't think that this will happen.

[Gondring]

If our Senators and Representatives had any brains to speak of, they would simplify the tax laws, stop trying to socially engineer America using deductions and credits, reduce the rates across the board, and cut wasteful and needless Federal spending. However, given the current state of the monster that is our Government, I don't think that this will happen.

If the voters had any brains to speak of, they would elect Senators and Representatives who would ... etc.

[imdref]

It would be nice to see spending cuts to off-set patching the AMT. Instead, the Democrats want to raise taxes, and Bush wants to borrow. Maybe Tom Coburn can get involved and find $40 billion in cuts?

[imdref]

This is one of the dumbest taxes ever devised. You’re punished for living in a high tax state where salaries are typically higher and so are real estate taxes etc. I’m glad I don’t live in NJ ot NY even though I expect the AMT will hit me this year.

IMHO income taxes in general are a dumb tax, they remove incentive to work hard and increase your earnings. It does seem as the NST is starting to move into the mainstream, hopefully we can continue to see momentum.

[EVO X]

Entire CNN AMT article

[billmor]

As of yesterday Dec 4th, there was still no deal in Congress about fixing the AMT...The tug of war continues.

Here is the AP article:

http://ap.google.com/article/ALeqM5j3ZsDliW4YkBYOmxXa7PQW3L62vwD8TAU7AO1

[ripley]

a silly tax passed by muddle-headed social activists who considered a certain few taxpayers to be evil if they took advantage of deductions thought up by muddle-headed social activists who considered anyone who made money to be evil.

turns out that the muddle-headed social activists who considered people with money to be evil are the source of evil in the tax system. (may even the source of all evil in the world and maybe even the universe.)

[svcw]

Thanks