Democrats Seek to Lead the Way in Tax Overhaul

Source: NY Times

House Democratic leaders, in an effort to upstage Republicans on the issue of tax cuts, are preparing legislation that would permanently shield all but the very richest taxpayers from the alternative minimum tax, which is likely to affect tens of millions of families as early as next year if it is left unchanged.

The effort, which lawmakers emphasize is still in its early stages, would exempt millions of people from the tax but would have to come up with a way to offset an enormous loss of revenue in the next decade. Measured in dollars, it would be far bigger than Democratic initiatives to provide money for children’s health care, education or any other spending program.

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But the tax is expanding at a rapid pace, partly because it is not adjusted for inflation. It can hit people with incomes as low as $50,000 and if left unchecked is expected to affect 23 million households during the 2007 tax year — up from 3.4 million last year.

Republicans, including President Bush, agree that the alternative minimum tax is out of control and ought to be frozen if not eliminated entirely. But so far Congress and Mr. Bush have only prevented its expansion with a series of one-year fixes. The House Democrats, by contrast, hope to force the issue of a permanent overhaul of the tax, despite the potentially huge cost.



Read more: http://www.nytimes.com/2007/04/09/business/09tax.html?hp

done about this, the Alt. Min tax is bullshit because it doesn't tax appropriately but then again it generates a pretty big wad of cash. Maybe they'll just say screw it and implement a flat tax rate!

Problem solved.

Next.

Americans seem to be clueless about the Alternative Minimum Tax due to the static caused by a terrible thing called the "death tax" da da da dum...

"Oh my god, the government taxes your death, that crazy Democrat party!" Can't the great white republicans save us from those crazy big guvmint commies?

;-)