Democrats’ Budget Hypocrisy

Democrats’ Budget Hypocrisy

Where is the AMT fix?

APRIL 2, 2009

That was then...

Democrats criticized a budget that “excluded” a permanent fix for the Alternative Minimum Tax (AMT)…
House Budget Chairman John Spratt (D-SC): “The Bush budget is notable not only for what it includes but for what it excludes, such as a permanent fix for the Alternative Minimum Tax… Bush budget would patch the AMT for 2008, but leave it fully in force over the remaining four years, substantially overstating revenues.” (Press Release, 3/5/2008)

And called for an end to “smoke and mirrors”…
Ways and Means Chairman Charles Rangel (D-NY): "...maybe the Republican leadership… might come forward with any plan or some plan to remove the alternative minimum tax. And even though we know it's going to cost over $800 billion or maybe $1 trillion, I just hope that maybe next year that it's not smoke and mirrors and we didn't intend to tax in the first place..." (Congressional Record, 12/9/2007)

 

But this is now...

Democrats propose a budget that only patches the AMT for ONE year:
According to an Associated Press analysis, "AMT relief expire[s] after 2010" under the House Democrat budget plan. ("Highlights of budget plan by Obama, Democrats," 3/29/2009)

The New York Times confirms as much: "At the same time, the House spending plan assumes $68.6 billion will be spent to fix the alternative minimum tax for just one more year." ("High-Minded Budget Goals Yield to Reality," 3/27/2009)

Meanwhile, House Republicans today introduced two budget plans that fix the AMT PERMANENTLY:
"The Path to Prosperity" – sponsored by Rep. Paul Ryan, Ranking Republican, House Budget Committee

The "Balanced Budget Resolution," by the Republican Study Committee

 

So what happened to fixing the AMT?

Well, as Chairman Spratt noted just last year: "If not patched or fixed permanently, the Alternative Minimum Tax is a robust revenue raiser…"