Thomas Considers Not Including AMT in Reconciliation

It appears House Ways and Means Committee Chairman Bill Thomas (R-CA) may not include a temporary alternative minimum tax (AMT) patch this year to protect 14 million people from paying the tax. An AMT one-year fix will not fit in the reconciliation package along with an extension of capital gains and dividends, which has a cost of roughly $21 billion over two years. An AMT fix, on the other hand, would cost about $30 billion. Thomas' wavering comes as moderate Republicans are voicing their concerns on passing both tax cuts and spending cuts in the same reconciliation package. Moderates have pushed Thomas to scale back the tax bill, which has generally been assumed to total $70 billion over five years. There is a chance an AMT fix could pass outside of reconciliation, however, Thomas noted that he may wait until next year's debate on comprehensive tax overhaul to address that issue. "Would it make sense to soften the blow right before you're trying to look at a change in structure to deal with that very issue, or might it not help the momentum on tax reform if a few more people fully understood the impacts of AMT?" he said. Associated Press: House's Top Tax Writer Weighing Charges
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