September 6, 2007

THERE'S NO BETTER TIME FOR A $100 BILLION TAX CUT:

Democrats divided on tax fix (Eric Pfeiffer, September 6, 2007, Washington Times)

Congressional Democrats, who criticized Republicans for not fixing the alternative minimum tax when they were in power, have been unable to unify behind a plan to protect the growing number of middle-class families hit by the tax.

House Ways and Means Chairman Charles B. Rangel says he wants a permanent fix for the AMT, but the influential New York Democrat faces opposition from lawmakers in his own party and from Republicans as he convenes hearings on the issue today.

Several Democratic congressional sources say Mr. Rangel's counterpart, Senate Finance Committee Chairman Max Baucus, Montana Democrat, who is up for re-election next year, does not want to be tagged as raising taxes to permanently fix the AMT. Analysts say eliminating it requires other taxes to replace the $100 billion AMT generates annually.


If Mr. Rangel just passes the cuts without any offsets the GOP will have to vote for it, though they may add cuts of their own. Hillary Clinton, in particular, would have a hard time opposing tax cuts as she runs for president.

Posted by Orrin Judd at September 6, 2007 7:48 AM
Comments

Several Democratic congressional sources say Mr. Rangel's counterpart, Senate Finance Committee Chairman Max Baucus, Montana Democrat, who is up for re-election next year, does not want to be tagged as raising taxes to permanently fix the AMT.

Particularly he doesn't want to be tagged as raising taxes that actually affect people in Montana in order to cut a tax that affects almost no one in Montana.

Posted by: John Thacker at September 6, 2007 8:15 AM

"Analysts say eliminating it requires other taxes to replace the $100 billion AMT generates annually."

Perhaps we need some different analysts if they really think this is "required" instead of just one option among many...

Posted by: b at September 6, 2007 2:31 PM
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