Thursday, August 02, 2007

Three Cheers for Rangel -- Comprehensive AMT Reform

It appears that Charles Rangel (D-NY) is still working to keep his word regarding reforming the dreadful Alternative Minimum Tax. Although Senate Finance Committee Chairman Sen. Max Baucus (D-MT) is pushing for another one year patch, Congressional leaders Rangel and Neal are pushing for and AMT exemption for couples with income up to $250,000. There are a few other notable tax changes that Rangel and Neal are pushing for among those include, an increase the standard deduction, and possibly expand the EITC and child tax credit. In order to remain Revenue neutral Rangel and Neal propose to raise taxes on those with incomes above 500,000 dollars, the Congressmen do not expound on how high they would raise taxes.

Although I am hesitant to give a full unqualified thumbs up to the Rangel proposal (due to the vague explanation of the 500k + tax hike). I applaud the efforts to continue lessening the tax burden of the poor and middle class families. The push to reform the AMT is a breathe of fresh air to the "sweep it under the rug" approach to AMT reform that Congress has taken for the past several years. For a Democrat Congressman Rangel isn't that bad.

2 comments:

Ben said...

What's the alternative minimum tax?

pramahaphil said...

It is a poorly conceived second tax system that was implimented to keep wealthy paying a fair share of tax.

Read this Wikipedia link.

http://en.wikipedia.org/wiki/Alternative_Minimum_Tax