President Obama should have embraced the revamping of the AMT

[WCGreen]

as part of his stimulus package.

The republicans inserted this in and so they will take credit for eliminating a particularly onerous tax.

Originally put into place back in the late 60's to reign in the upper income bracket avoidance of taxation, the AMT (Alternative Minimum Tax), was never indexed to inflation, crept downward so that middle class taxpayers, who had a one time tax event occur, were suddenly propelled into a high tax bracket.

The republicans are moving to eliminate the AMT altogether. President Obama's economic team should have suggested a retroactive indexing of the AMT so that the 40 or so years of inflation would set the AMT at the correct bracket.

I prepare taxes for a living, been at it form over 20 years. My clientele is predominately middle class with a few borderline affluent clients. 20 years ago, not one of my clients faced AMT . Now, almost 20 percent are facing a tax that was designed to recapture recognized income that wealthy tax payers were avoiding.

To me, that was both a political and economic blunder.

This is a one time deal for Obama and his administration will be measured by how the stimulus package works over the next 18 months. He is working to get back ahead of the game, but the question he now had to face is will the media let him?

By the comments I have heard on the news today, it looks as if the medea message is pessimistic at best.

I was heartened, last night, by President Obama's response to the GOP tax cut at any cost appraoch to anything remotely related to economics.

He can recapture the momentum, but he has to build on last nights speech.

I am confident that he has what it takes.

Remember, not many presidents walk through the door at 1600 Pennsylvania Avenue with such a disastrous set of events to deal with on day one. Obama can do it.

[HughMoran]

1. He definitely should have

Though I think your last 2 sentences describe the situation he's facing best. This is a historic & disastrous set of events we face. Talk about trial under fire - I also think he can do it and I realize that it's not an easy task and why the Republicans are desperately attempting to thwart his impending success.

[Still Sensible]

2. I agree completely

"The republicans are moving to eliminate the AMT altogether. President Obama's economic team should have suggested a retroactive indexing of the AMT so that the 40 or so years of inflation would set the AMT at the correct bracket."

And it would be entirely defensible as a protection for the middle class.

[karynnj]

5. That would be a good idea - removing the need for a patch to fix it each year.

[CaliforniaPeggy]

3. His actions (or non-actions) could be seen as a betrayal

of the middle class, who he has vowed to support...

I hope it won't be. But it was a mistake, I agree.

I too am confident he has what it takes...

He is smart and motivated, and hit the ground running well before his inauguration.

[karynnj]

4. It's a one year fix - and both Grassley and Menendez had similar

provisions - the Finance committee treated them as the same, because there was little difference - so at least at the committee level, it was bi-partisan.

[CaliforniaPeggy]

6. K&R

[crimsonblue]

7. keep the AMT

gutting it is extremely unproductive and economically deflating.

[WCGreen]

8. Keep it, but let it go after the tax payers the AMT was originally

Intended. It needs to be indexed for inflation.