Middle-Class Relief From Alternative Taxation's Bite Passed With No Revenue or Spending Offsets

[CharmCity]

Source: Washington Post

Eleven months after adopting stringent new rules aimed at reining in the federal deficit, the Senate last night shrugged off its pledge of fiscal rectitude and overwhelmingly approved a measure to spare millions of families from the growing reach of the alternative minimum tax without providing an offsetting tax increase.

Despite the heavy toll the AMT exacts on some middle-class taxpayers, Congress has been loath to repeal it outright because that would leave a trillion-dollar hole in the federal budget over 10 years. Instead, successive Congresses have opted for one-year "patches" that hide the long-term cost. The Senate-passed bill would spare the middle-class households touched by the AMT an average of $2,000-per-family increase on 2007 income taxes and would ensure that refunds of as much as $75 billion would be distributed without delay.







Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/12/06/AR2007120601242.html?hpid=topnews

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This is actually great news for many -- and a big surprise -- word today was this was DOA.

Was it economically irresponsible to break the "pay go" rule? Depends on your philosophy. I like to think this is a huge relief for most of us working class folks who would've shouldered a big tax increase right about the time mortgages reset, gas prices go up, and the economy cools.

[aquart]

1. And if they taxed the upper ten percent, it would all go away.

Wouldn't it? And I do mean TAXED. Nobody should be so rich that there is nothing left to buy but his government.

[Javaman]

6. Oh you! you know the rich are our betters!!! nt

[sjdnb]

2. Just goes to show we need more Dems in Congress

I watched as the GOP shot down amendments that would have paid for this. And, they are the 'fiscally responsible' party who like to cut any measly amount of return of tax dollars to Americans in the form of education, housing, or other 'fair' (not social) programs and label middle to lower class Americans who support such programs as lazy or wanting a 'hand out'?

But, they are more than willing to mortgage the futures of those people's children or cut fair programs to bail out or 'hand out' billions in lucrative contracts to their wealthy cronies. And, so what if those businesses engage in fraudulent or criminal behavior? Accountability only applies to the 'little people'.

[Vinca]

3. It boggles the mind the Republicans voted against "pay go" in the bill.

Maybe they should change it to "charge go" in order to get them on board faster.

[CharmCity]

4. As long this war continues, nothing matters re: budget

Compared to the cost of the war, nearly every other program is chump change, including the AMT extension. So I think the pro-war Repugs are huge hypocrites when suddenly they care about the budget and paygo rules.
Really, this is classic GOP: refuse to tax a handful of EXTREMELY rich people. Refuse to be financially responsible in real world terms. And suddenly become tightwads when it comes down to anything that would benefit the majority of the nation.

And amen, we need more Dems in the Senate so they can vote for cloture and overcome vetoes.

[Mountainman]

5. This should save me a lot of money. With no child deductions my wife and I

pay a lot of taxes and more than my share in my opinion. We seem earn enough to pay the AMT but not enough to sock it into a retirement account to avoid taxes. I need the money to pay bills but always end up owing the IRS if I pay my bills.