December 6, 2005
CAPITALIST TOOL:
Band-Aid Fix for Alternative Minimum Tax (Jonathan Weisman and Shailagh Murray, December 6, 2005, Washington Post)
The alternative minimum tax is Washington's ticking time bomb, a menace not just to middle-class taxpayers but to politicians of all stripes. No one wants it to explode, but no one wants to pay the enormous cost of defusing it, either. [...]To the surprise of many lawmakers, House Ways and Means Chairman Bill Thomas (R-Calif.) left the AMT fix out of his version of a tax "reconciliation" bill. Instead, House leaders will bring the AMT bill to the floor tomorrow or Thursday under special rules designed to expedite passage of non-controversial bills. Thomas thought an AMT patch would have overwhelming support. If a protected tax reconciliation bill was limited this year to $70 billion over five years, why waste that precious $70 billion on a bill with broad support?
Under such "suspension" rules, bills need the support of two-thirds of the House to pass. In other words, while the Senate used parliamentary rules that made it easier to pass the AMT fix, the House is using rules that will make it harder, thinking lawmakers from neither party would dare vote against "stealth tax relief."
It's a good bet.
"It's not surprising they are doing this, because next year, it's going to hit big-time," Rep. David E. Price (D-N.C.) said, adding that Democrats probably would support the measure if it is not linked to less bipartisan tax cuts.
Democrats are sufficienty vested in AMT relief that it can, and must, be used to force them to sign on to a general tax restructuring bill. Posted by Orrin Judd at December 6, 2005 9:46 AM
Wasn't the NYT whining about this a couple of days ago?
Posted by: Sandy P at December 6, 2005 11:20 AMFor the sake of Arnold, Schumer, and Hillary, I would raise it.
Posted by: ratbert at December 6, 2005 12:10 PMI thought it was only the Evil Republicans who were for tax cuts for the rich. The GOP should push, and push hard, the fact that the AMT is a tax that the "little guy" doesn't pay, but rich college educated Demo-voting provessionals who are against "tax reform" do pay.
Posted by: Raoul Ortega at December 6, 2005 12:24 PM(oops, hit the post button by mistake.)
Because if this passes, and the AMT is substantially reduced, you betcha the Dems will use it as further evidence that the GOP only favors the rich, and as a way to prevent real tax reduction for people who don't vote Dem.
How about we lower the rate of the AMT to, say, 17%, apply it to everyone, and junk the rest of the tax code?
Posted by: PapayaSF at December 6, 2005 7:25 PM