Congress Just Approved AMT Relief
AMT (Alternative Minimum Tax) has been the bane of many as the tax law has not been permanently updated to index for inflation and other tax law changes. Accordingly more and more of middle income America has been penalized by this calculation which was originally intended to ensure that the rich did not receive undue tax benefit from their tax deductions. Thus, Congress both in 2006 for the 2007 tax year and now in 2007 for the 2008 tax year has been faced with passing legislation to ensure that our middle class is not unduly penalized for a tax law which was not intended to address them and their taxes. Congress just passed a one year relief act which will now go to President Bush for approval before it becomes law. Though I applaud Congress on their action, its lateness and its status as a temporary fix do not address the longer term problem of making a permanent change to tax law for correcting the AMT rules. The proposed law, if it is signed, will save approximately 25 million taxpayers an average of $2000 each. If you want to be an active partner for pro-active positive change contact your Congress representatives and President Bush’s office today as your inaction might cost you thousands.
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