August 17, 2007


Alternative Minimum Tax Plan May Prove To Be Veto-Proof (ALISON FITZGERALD and PETER COOK, August 17, 2007, Bloomberg)

The chairman of the House Ways and Means Committee, Rep. Charles Rangel, said a proposal to curtail the alternative minimum tax and boost taxes on buyout firms will have benefits for so many people that it may pass the Congress with enough votes to override a presidential veto.

The fix to the AMT will be combined with increases in the earned income and child tax credits so that about 90 million people could benefit from the final proposal, Mr. Rangel said in an interview Wednesday. He earlier said he plans to combine the AMT with a proposal to more than double taxes on carried interest — the compensation that investment managers at hedge funds and private equity firms earn.

"When you begin to see how many people in the U.S. would enjoy the benefits of a tax reduction, this might be a veto-proof bill," Mr. Rangel, a Democrat of New York, said

There is no downside for W, the historical record-holder, in adding further tax cuts to his legacy.

Posted by Orrin Judd at August 17, 2007 9:29 AM
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