Looks like Congress is still making some efforts to clean up the impending AMT disaster. Yesterday the Senate approved a one-year AMT patch without offsets, stripping out all of the other measures from the original House bill (HR 3996) that were originally intended to provide the offsetting increase in tax revenue. The measure passed last night by an 88-5 margin.
It now heads to the House, but there is still no guarantee that it will get through. Without any PAYGO provisions attached to the bill it is estimated that the cost of the measure will be some $51 million added to the current deficit. Many Dems are insisting that they will vote “no,” unless tax increases are added that will offset the anticipated cost.
House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., is reported to be drafting some amendments to the new legislation to be addressed in the House before the final vote. It is anticipated that he will try to reinstate the rules change for offshore nonqualified deferred compensation for hedge fund managers that was removed by the Senate.
At this point we’re back to a “wait and see.” Stay tuned to TaxLoopholes for updates on how things progress.