Looks like turkey has trumped taxes. On November 15th, Senate Democratic leaders were to try and pass the pending legislation with the AMT patch before recessing at midnight. Yet here we are, on November 16th, listening to a deafening silence from Washington.
With Congress now taking two weeks off for Thanksgiving, it is unlikely that the bill in its current fashion will survive – especially as President Bush said he would veto it, not for the AMT patch so much as for other tax measures that have been added in.
However, the Senate has an amendment waiting in the wings, which would give us a one-year AMT patch without an offsetting PAYGO provision along with a 2-year etension of some other ta provisions that would have a PAYGO provision.
I find it interesting that the Democrats are willing to consider a PAYGO waiver for the AMT patch, as putting PAYGO into place was one of their major accomplishments following last fall’s elections. WIth an election year coming up and many “blue” states also being concidentally AMT-prone states, it could be politically-motivated. But if it keeps AMT away from millions of taxpayers next year, that’s not a bad thing!