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View Diary: Mitch McConnell to Save the Day? (59 comments)

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  •  Unfortunately, that's where things are right now. (0+ / 0-)

    If you want those 2 million people to keep their unemployment benefits, if you want the middle class not to owe a few thousand more this April on their 2012 returns (due to the AMT patch expiring), if you want taxes not to go up on everyone, Reid and McConnell are your best hope right now.  

    •  they can't retroactively change 2012's rates (1+ / 0-)
      Recommended by:
      Mark Mywurtz

      the rates are already published and printed... and deducted.

      "Kossacks are held to a higher standard. Like Hebrew National hot dogs." - blueaardvark

      by louisev on Fri Dec 28, 2012 at 07:56:34 PM PST

      [ Parent ]

      •  Rates (0+ / 0-)

        This isn't changing rates, it's the AMT which is something of a different tax system though not.

      •  Yep, the 2012 tax bill will be affected for (0+ / 0-)

        millions of families, down to two income families of about $75,000. That is because the AMT patch expires December 31 -- and if that is not addressed, the "old" AMT will apply for 2012 income.  Millions of families will owe a few thousand more this April 15 when they file their 2012 returns.  

        It's been discussed in the media, but hasn't gotten a lot of attention in the public.  See, for example, here and here and here.

        •  Apparently, the premise of AMT should have but (1+ / 0-)
          Recommended by:

          did not include some form of COLA or inflation element, so the minimum income for it has been dropping year after year, because the Congress patched, not effective THIS year, instead of fixing, add COLA from date X, and updating the floor numbers. There have been people with incomes as low as IIRC 28K who have been pulled in.

          The AMT is a scheme that was devised to limit the effectiveness of particular deductions beyond a certain minimum level in figuring income tax. At some point in the past, a Congress decided that people from certain states or with certain deductions were getting unfairly large deductions, and this was the fix. States with income taxes generated too many deductions and there were thought to be too  many medical deductions, that sort of deductions. So that under AMT, no matter how many real deductions of these kinds you had, you had to go back and refigure your income and tax as if you only had a much smaller amount. Basically this penalized all states with income taxes, and all people who had really financially serious medical conditions not covered by insurance. Guess what color those states are politically.

          •  President Richard Nixon (1+ / 0-)
            Recommended by:

            proposed the AMT and Congress agreed. Nixon said he thought it was "un-American" for a US citizen to work the tax code in such a way so he or she ended up paying NOTHING in taxes. My, how Republicans have changed.

            BTW, the first year the AMT went into effect (1969 or 1970 I believe)? Total number of filers affected?  155!


            "God has given wine to gladden the hearts of people." Psalm 104:15

            by WineRev on Sat Dec 29, 2012 at 04:36:56 AM PST

            [ Parent ]

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