Senate-Passed Bill Blocks Tax Increase

AP via SFGate ^ | 12/6/7 | JIM ABRAMS, Associated Press Writer

[SmithL]

WASHINGTON, (AP) -- The Senate voted Thursday to block a looming tax increase averaging $2,000 for millions of taxpayers after Senate Republicans succeeded in thwarting a Democratic plan to also raise taxes on investors.

The Senate bill, passed 88-5, provides a one-year fix for the alternative minimum tax but without matching the cost of the tax relief with new tax revenues. Without the fix, an estimated 25 million people would be subject to the higher AMT tax, up from 4 million in 2006.

The Senate vote puts it at odds with the House, where Democratic leaders, under a principle of not adding to the national debt, demanded that the AMT fix be paid for. Last month, the House passed legislation matching the AMT fix and other tax cuts with about $80 billion in new tax revenues.

Senate Finance Committee Chairman Max Baucus, D-Mont., said it was not his first choice to pass an unpaid-for bill but "this is our best choice." He said 12 million people in the $100,000 to $200,000 income level alone would be hit by the AMT without the fix, and "we need to stop that from happening."

The bill now goes back to the House, where Rep. Charles Rangel, D-N.Y., chairman of the tax-writing Ways and Means Committee, suggested making up the difference by closing a loophole on offshore funds that now escape taxation.

Earlier Thursday, Senate Republicans united in stopping the Senate from moving to the House-passed bill. The vote was 48-46 against beginning debate on the House bill, 14 short of the 60 needed.

[jimtorr]

.......a one-year fix for the alternative minimum tax but without matching the cost of the tax relief with new tax revenues.

The MSM is at it again.

First, fixing the AMT, even for only one year, is not tax relief. It prevents a tax increase for 12 million tax-payers that was not voted on by Congress.

Second, not raising taxes is not an expense that needs to be paid for. How about simply not spending money that isn't coming in?

[Postman]

“Second, not raising taxes is not an expense that needs to be paid for. How about simply not spending money that isn’t coming in?

Beautifully put!

[MaxMax]

House Democrats, committed to offsetting any lost revenues,
passed a bill that included $80 billion in new tax revenues,

!

[MissouriConservative]

It seems that the dems in congress seem to forget half of their own “pay go” rules. The offsets can either come from tax increase or spending decreases. Why is that the dems can never come up with spending decreases?

[VeniVidiVici]

The Senate bill, passed 88-5, provides a one-year fix for the alternative minimum tax but without matching the cost of the tax relief with new tax revenues.

WHAT?? Are Pelosi and Reid that freaking stupid that they think people won't see thru this BS?

The tax hasn't been implemented yet.

WHY DOES IT NEED TO BE PAID FOR BY RAISING OTHER TAXES??!!

[princess leah]

Let me get this right, they are kicking this issue down the road one year right into the heart of ELECTION 2008? Merry Christmas - what a gift to the republicans!