TEXT OF STORY
Scott Jagow: The mother of all tax reform bills may be off the table for now. But it’s daughter is due to be born this morning.
Democratic Congressman Charles Rangel is unveiling a one-year patch for the Alternative Minimum Tax, or AMT. He says it would save millions of Americans from a tax hike next year. Jeremy Hobson has more from Washington.
Jeremy Hobson: In the past, when Congress has put the cork in the AMT bottle, they’ve simply added to the deficit.
But when Democrats came to power last year, they made a promise to pay as they go.
So the question on Capitol Hill is, will the AMT patch keep the Dems from keeping the pay-go promise?
Ken Kies: It’s more likely that they will end up waiving pay-go and work out something with the president that he’s willing to sign.
Ken Kies is a lobbyist with the Federal Policy Group. He says the Senate is unlikely to accept some of the tax increases Rangel probably has in mind to offset the cuts.
But Aviva Aron-Dine with the Center on Budget Policy and Priorities says pay-go or not, an AMT patch is almost certain.
Aviva Aron-Dine: It’s extremely unlikely that the AMT would simply be allowed to grow this year. That should not be a concern that’s keeping taxpayers up at night.
Without a fix soon, Rangel says 23 million taxpayers would face increases next year.
In Washington, I’m Jeremy Hobson for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.