AMT tax reduction passes

Looks like it adds about $50 billion to 2008 after tax incomes.

Demand can use all the help it can get right now!

Congress Gives AMT Relief For 20 Million Taxpayers

Congress acted in its final hours Wednesday to block growth of the alternative minimum tax, putting off an economic hardship affecting more than 20 million taxpayers and avoiding what would have been a political black mark for both parties.
The House voted 352-64 for a one-year fix of the AMT, a four-decade tax originally meant only to touch super-rich tax dodgers but now hitting millions of middle- and upper-middle income level households. Without that fix, an annual ritual of Congress, those subject to the tax would have risen from 4 million in 2006 to about 25 million in 2007, with the average levy of $2,000 a taxpayer.

“What we are hearing across the country today is a collective sigh of relief,” said Rep. Eric Cantor, R-Va.

The legislation now goes to President Bush, who says he will sign it because, bowing to White House and GOP demands, it does not include tax increases or other new sources of revenue to pay for the $50 billion cost of the tax relief.