Hoyer says Congress may not be able to patch AMT

By Mike Soraghan | Posted: 12/18/07 12:06 PM [ET]
December 18, 2007

House Majority Leader Steny Hoyer (D-Md.) hinted Tuesday that Congress may not be able to stop a big tax increase from hitting 23 million Americans.

Hoyer, pressed on whether Congress would resolve disputes over the Alternative Minimum Tax (AMT), said, “Maybe.”

His remark came as a surprise, since it has widely been assumed that Democrats will give up their effort to “pay for” the AMT patch and go with the Senate plan to load the cost onto the deficit.

Hoyer’s statement came the morning after nearly 30 conservative Blue Dog Democrats signaled their discontent with the Senate AMT plan by voting with Republicans against an adjournment resolution.

Hoyer was asked about efforts to resolve the dispute. He said he had come to the 11 a.m. briefing directly from the meeting to resolve the impasse and did not know the “state of play on AMT.”

“There’s no deal” with the Blue Dogs, he said.

An AMT patch must be passed soon to avoid a big tax hike. By waiting as long as they have, lawmakers have already raised the risk of a tax-filing mess that could provide fodder for political attacks. The IRS says it needs seven weeks from the time the president signs the AMT patch into law to update its forms and re-program its computer. Read On->


Stephen Martinez EA
Tax Consultant
MSE & Assoc
Licensed to Practice before the IRS
Website: Valleytaxoffice.com
Tele (818) 787-6224