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When Will AMT Patch Be Passed?

1 min readBy: Gerald Prante

Congress returns this week and a lot is on its plate, the most time-pressed issue being what to do with the alternative minimum taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. . An update from CongressDaily AM:

Senate leaders will return to the question of how to shield 21 million taxpayers from new taxes this year as a result of the alternative minimum tax, as Senate Republicans have not given up demands to offer amendments that include extending other tax cuts.

Majority Leader Reid and Minority Leader McConnell will likely reprise talks toward reaching a consent agreement that would limit amendments and allow debate on a substitute that patches the AMT for one year, and extend for two years a range of expiring business tax provisions.

House Democrats are still insisting on fully offsetting the AMT patch, though their Senate counterparts have basically conceded that pay-as-you-go requirements will have to be waived for the AMT portion.

It’ll be interesting to see how long they actually wait and what problems this causes for the IRS this coming tax filing season. Yet another reason why fundamental tax reform is a better way to go.

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