Congress finally made up its mind about the AMT – on the last day of business for 2007.
The House voted 352-64 to “patch” the AMT. President Bush is expected to sign the bill, which the Senate has already approved.
How long has it been? In June, the Joint Committee on Taxation estimated that this year 81% of taxpayers with annual incomes between $100,000 and $200,000 and 49% of taxpayers with incomes between $75,000 and $100,000 would have been subject to higher taxes under the AMT. The original intention of the AMT, however, was never to tax those folks but to prevent high-income taxpayers from taking advantage of tax preference items like state and local income tax deductions.
In exchange for the AMT, the Democrats got… nothing. That’s right, nothing. It’s a simple patch. There is no offsetting tax revenue, a measure that Republicans cheered and Democrats decried.
sigh, just another example where the dems caved… I’m not surprised, but I sure am pissed.
Anne, I’m right there with you. The plan is fiscally not sound – but we needed the AMT relief. Not sure what’s going to come of any of it. A patch is completely the wrong way to go – but better than nothing.
I agree with both of you.
I am all about a very simple tax code. No deductions–everyone pays. I call it a “graduated flat tax” (yay! bureaucratic double-speak).
The percentage of your income that you pay goes up with your income (and hence, your ability to pay). Of course, the highest percentage in my dream scheme is 18% of income for Fed taxes for individuals/families, and 27% of income for major corps…