The Alternative Minimum Tax is unfair and both parties agree should be eliminated or millions of middle class taxpayers will be unfairly overtaxed.The Democrats' "pay as you go" rules require an offset of spending cuts or tax increases to replace revenue lost by fixing the AMT. They propose ending a tax loop hole for hedge fund managers to pay for the AMT fix. President Bush,in his weekly Saturday radio address said no to that and vows to veto any tax increase. He seems to have the votes to back up his veto and the Dems are determined to maintain Pay As You Go and avoid digging a bigger budget deficit. Folks, we have a stalemate. If Bush won't sign on to closing the loop hole for the Hedge funds or any other tax increase then that leaves only spending cuts as a way to underwrite the AMT fix. Should the Democrats go along with the President what on earth could be cut?
The ANSWER is below the fold.
Not passing Bush's war appropriation bill will more than offset the cost of eliminating the AMT. The Democrats should pay for the tax cut by ending the war. It's really a choice between more war in Iraq or repeal the alternative minimum tax.Democrats could cut the minimum tax and adhere to their pay as you go rule by cutting a big wasteful government program - the war.