The House of Representatives passed Ways and Means Chairman Charlie Rangel's AMT patch bill today. The vote was 216-193. This is a huge hit to small businesses -- entrepreneurs and the other businesses being targeted by these tax increases should not have to "pay for" senseless tax policy that should have been fixed long ago. Remember, the AMT was implemented because 155 ultra-wealthy taxpayers were able to use the tax code to avoid taxes. From the carried interest provision (increasing the tax rate from 15% to 35%) to other increases, these will only serve to make the U.S. less competitive, send capital elsewhere, and limit the amount of precious growth capital for small firms. SBE Council "KEY VOTED" this bill as a vote against entrepreneurs. (See our Key Vote letter here: http://sbecouncil.org/legaction/display.cfm?ID=2448). It is expected that the Senate will not raise taxes to "pay for" the AMT patch, but who knows. The Democratic leadership said they wouldn't even vote on the AMT patch until after Thanksgiving! The IRS said it needs to know by Nov. 16, as they are finishing up tax forms and software for the upcoming filing season. Of course, taxpayers will have to pony up the money if Congress does miss the deadline, and the IRS is forced to spend more dollars fixing and expediting new forms and software.
On that note, have a great weekend!