The Senate's top tax writer says he won't wait for the President to come up with a plan to fix the looming Alternative Minimum Tax mess. Sen Charles Grassley (R-IA) promises to come up with his own plan to at least hold the line on the AMT.
The AMT was created to make sure wealthy people with a lot of deductions and access to loopholes, would pay at least some tax. But as incomes increase, more Americans are inadvertantly falling within the boundary of the AMT -- forced to pay higher taxes.
If Congress fails to act this year, the number of Americans paying the AMT will jump from 3 million to 20 million in 2006. (Reuters)