Senate passes AMT patch

The Senate late Thursday passed a one-year fix to the alternative minimum tax (AMT), setting up a potential confrontation with the House, which passed a much different version of the bill earlier.

{mosads}Democrats want to offset the cost of the patch, which would shield millions of Americans from becoming eligible for the higher tax. However, Republicans are balking at the idea and in the Senate they have enough support to block such a plan.

“I am relieved that the Senate has acted this evening to extend AMT relief for 19 million taxpayers – including nearly 100,000 Nevadans,” Senate Majority Leader Harry Reid (D-Nev.) said following the vote. “But I want to make it perfectly clear that I am very disappointed Republicans prevented the Senate from passing AMT relief in a fiscally responsible manner.  Instead, Republicans insisted that the $50 billion cost of this proposal be added to the national debt – a debt that is already growing at a rate of $1 million a minute.”

The Senate bill without offsets passed 88-5.

The five senators who voted no were Senate Budget Committee Chairman Kent Conrad (D-N.D.), and Sens. Tom Carper (Del.), Byron Dorgan (D-N.D.), Russ Feingold (D-Wis.) and Sheldon Whitehouse (D-R.I.). The senators running for president missed the vote.

Senate Minority Leader Mitch McConnell (R-Ky.) praised passage of the measure and criticized Democrats for delaying action until now.

“The Democrats’ unprecedented and indefensible delay on this commonsense solution means the filing season will already be disrupted,” McConnell said. “Now that the Senate has passed an AMT fix without tax hikes, the House must do the same or explain to taxpayers why they will further delay tax refunds for millions of Americans.”

The White House, which has pushed Congress to act on the issue but opposes offsets, urged the House to pass the Senate version.