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Tue Dec 4, 2012, 04:50 PM

GOP Sees AMT as Leverage in Fiscal Cliff Talks

Source: Reuters

Under U.S. law, taxpayers each year must pay the greater of regular federal income tax and the AMT. The latter requires taxpayers to give up certain tax breaks, typically exemptions and deductions for state and local taxes and medical costs.

Only some 4 million taxpayers pay the AMT because Congress routinely "patches" the AMT for inflation to spare middle-income taxpayers. Without a patch for 2012, up to 33 million taxpayers will have to pay an AMT liability, according to the Internal Revenue Service.

That is one in five taxpayers.

Since many taxpayers subject to the AMT live in the Democratic strongholds of California, New York and Illinois, the threat of a lapse may be the Republicans' strongest card after Obama's re-election last month on a theme of tax fairness.


Read more: http://www.reuters.com/article/2012/12/04/us-usa-fiscal-amt-idUSBRE8B311O20121204?feedType=RSS&feedName=politicsNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Reuters%2FPoliticsNews+%28Reuters+Politics+News%29

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Reply GOP Sees AMT as Leverage in Fiscal Cliff Talks (Original post)
democrattotheend Dec 2012 OP
kysrsoze Dec 2012 #1
lonestarnot Dec 2012 #2
summerschild Dec 2012 #3
DallasNE Dec 2012 #4
LaPera Dec 2012 #5
David__77 Dec 2012 #6
democrattotheend Dec 2012 #7

Response to democrattotheend (Original post)

Tue Dec 4, 2012, 05:02 PM

1. Always an angle, rather than bringing fairness to the budget and tax system.

I say, go over the cliff, and see how angry the public gets at the GOP for doing NOTHING.

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Response to democrattotheend (Original post)

Tue Dec 4, 2012, 06:26 PM

2. Nice try at more bullshit.

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Response to democrattotheend (Original post)

Tue Dec 4, 2012, 06:52 PM

3. I was hoping the AMT had been included in the Senate bill they have ready to sign.

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Response to democrattotheend (Original post)

Tue Dec 4, 2012, 10:00 PM

4. AMT Doesn't Kick In Until Tax Filiing Time

That means that it does not have to be dealt with this year. It can pass any time next year with an effective date back to January 1st. Frankly, I would hope they wouldn't muck up this year's law with items like AMT that can be put off for now.

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Response to democrattotheend (Original post)

Wed Dec 5, 2012, 12:13 AM

5. I hope the republicans keep playing their games and force going off the fiscal 'cliff'

as tax cuts for the middle-class will absolutely happen in the new congress - but so much good can come out of going off the cliff bills the republican would never allow to occur if they had the chance....

Going off the fiscal cliff positives would be....

The best way to make the richest of rich pay a bit more fair share of taxes (Bush tax cuts would finally end).

A way to finally cut the huge bloated military industrial complex that republicans keep feeding as it grows and grows into a world wide imperialistic monster out of control.....

The best way to show the republicans that Democrats mean business and won't cave and that they won't be able to the same play games in February with the debt ceiling -

Republican won't be able to cut Medicare if we went off the cliff. because that what they have on the table and want to negotiate on.

The republicans in congress will overwhelmingly get the blame and rightfully so!

If Republicans don't fall in line with the will of the voters - Then let it ride of the cliff on January 1st!!!!!

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Response to democrattotheend (Original post)

Wed Dec 5, 2012, 02:23 AM

6. Lol...

I don't think so. Would expanding the AMT make overall taxation more progressive? I hope so.

Those who are affluent are either right-wing to defend their class interest, or they are left out of ideological conviction. I personally would not mind my taxes going up. I mind them going up and being spent on military bases ringing the earth and on weapons of mass destruction, yes - but not simply because they are higher per se.

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Response to David__77 (Reply #6)

Wed Dec 5, 2012, 08:38 AM

7. As the article states

The AMT, if not patched, would primarily hit middle class taxpayers, not the rich. I think it does not hit the rich as hard because most affluent people make more money in capital gains.

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