Adding Alternative Minimum Tax Relief to Stimulus may help Passage in Senate

[terisan]

Stimulus will be one-quarter of Federal Budget.
Reducing Alternative minimum tax will help middle class in high cost of living cities, like NY, LA, Chicago. Insuring 4% fixed rate mortgages also may be included-don't know effects of that.

<http://www.bloomberg.com/apps/news?pid=20601087&sid=a97ZnbjkP6YA&refer=home>

The House plan was panned today by Harvard University economist Martin Feldstein, a former Reagan administration official who has advised Senate Democrats on crafting their plan. Writing in the Washington Post, Feldstein said the House proposal is an “$800 billion mistake” that needs to be “thoroughly revised” even if it means delaying enactment for a month or two. ..........

“The problem with the current stimulus plan is not that it is too big but that it delivers too little,” Feldstein wrote.

Obama yesterday urged lawmakers to work out their differences in the next few weeks, saying delay in passing a final bill would cost more people their jobs. The Senate is likely to begin work on the stimulus plan on Feb. 2.

The Senate version of the stimulus bill already differs from the House plan. The Senate Finance Committee voted this week to add a $70 billion alternative-minimum tax cut to the package. Lawmakers in the two chambers also differ over how much to spend on highway projects, renewable-energy tax breaks and expanding access to broadband.

McConnell said Senate Republicans want to attach provisions designed to fight the housing crisis by having the federal government insure 4 percent fixed-rate mortgages.

“We realize we have to make some compromises; we believe we have,” said Democratic Senator Chuck Schumer of New York, pointing to the AMT language added at Republicans’ request. Obama had opposed including it in the stimulus.

[sharp_stick]

1. The AMT is something that really needs to be taken care of

once and for all, this crap where they try to do a quickie fix every year or two is getting kind of old.

[terisan]

2. I think it has to happen now, and probably will. nt