Senate passes AMT patch

By Klaus Marre | Posted: 12/06/07 8:23 PM [ET]
December 06, 2007

The Senate late Thursday passed a one-year fix to the alternative minimum tax (AMT), setting up a potential confrontation with the House, which passed a much different version of the bill earlier.

Democrats want to offset the cost of the patch, which would shield millions of Americans from becoming eligible for the higher tax. However, Republicans are balking at the idea and in the Senate they have enough support to block such a plan.

“I am relieved that the Senate has acted this evening to extend AMT relief for 19 million taxpayers – including nearly 100,000 Nevadans,” Senate Majority Leader Harry Reid (D-Nev.) said following the vote. “But I want to make it perfectly clear that I am very disappointed Republicans prevented the Senate from passing AMT relief in a fiscally responsible manner. Instead, Republicans insisted that the $50 billion cost of this proposal be added to the national debt – a debt that is already growing at a rate of $1 million a minute.”

The Senate bill without offsets passed 88-5. Read on->