House Passes Bill on AMT Relief

WASHINGTON -- The House of Representatives on Wednesday overwhelmingly approved legislation to ensure that as many as 19 million taxpayers will not be forced to pay the alternative minimum tax next year, Reuters reported.

The House voted 414-4 to extend for one year a temporary patch that will keep the number of taxpayers paying the AMT, about 3 million this year, from exploding next year. The tax was originally supposed to apply only to the very rich but now affects many more middle class households.

The House's AMT bill is separate from a $56 billion tax bill for 2006, which House lawmakers are expected to vote on Thursday, CNN/Money reported.

The Senate in November passed its own tax relief bill that included AMT relief but did not include an extension of lower tax rates for capital gains and dividends -- a centerpiece of the House's tax reconciliation bill and is something President Bush has been pushing for. The Senate and House will need to negotiate which elements from each of their bills make it into a joint bill that will be sent the president.

-- NYSSCPA.org News Staff

Posted on 12/7/05