Amt Patch News Today

There they go again. The House of Representatives passed anotherhuge tax increase. Earlier in the year they passed a big,economically harmful tax hike attached to a bill expandingveterans' benefits. This time, they married a big tax hike to abill extending the Alternative Minimum Tax (AMT) patch for 2009.

Congress recently passed the fiscal year 2010 budget resolution,which includes several provisions that will significantly raisetaxes and hurt economic recovery.

Its due. he was helping in this process. lets talk about the deficit trigger. this is something that is getting a lot of attention as well. this idea that you would automatically raise taxes if these really optimistic growth targets arent met and the deficit balloons. that sounds really hard to do. >> yeah, and it makes me think of things theyve done in the past that have sort of taken on lives of their own. things like the doc fix without getting into the details of that and the amt patch, they...

The bill would permanently adjust the income exemption levels for the alternative minimum tax, the amt and would adjust it for inflation. that is a big deal because every year congress would have to come back and do what is called an amt patch. they wont have to do that now. also, capital gains. capital gains and dividend tax rates for high income households would increase to 20% from 15%. for everyone else investment tax rates would remain at 15% or below. then you have extending long-term unem...

Where we saw there the ohio clock. i want to go through some of the specifics of this deal as we know it. i will read them. we used to have fancy graphics but this is breaking news so we will put up some live shots as i do. ed has been talking about them. first of all, on the income taxes an increase to 39.6% for individuals making more than $400,000 a year. families making more than $450,000 a year. previously that was 35%. as ed mentioned that is up to the clinton rate of 39.6. payroll tax a s...

For 2012 unfortunately congress hasnt even finished writing the 2012 laws let alone the fiscal cliff. they are going to be over 30 million people in taxes unless they do something called the amt patch. it is something where last year in 2011 they gave approximately 75,000 as an exemption but the law goes back to 45,000 dollars. all of these people what the ir is saying refunds will be delayed two months if the irs -- if congress doesnt act to change it. >> they are going to have to do something ...

Wont see them until they fill out the 2013 tax bill in april of 2014, the amt patch will hit much more quickly than that. thats something needing to be patched as of early -- if we go over, needs to be patched quickly. >> lets talk about that word, sequestration and theres a lot of concern about the defense cuts and the defense department, how to deal with it. leon panetta toning down the remarks saying that they would not necessarily require immediate action and could eventually mean furloughs ...

The impact is felt where and how. >> reporter: its fairly extensive and almost immediate. there is the likelihood of a further downgrade in america debt. if those automatic cuts do not take effect, much more likely to sea downgrade. number two, we are going to see financial chaos in d.c. the next few weeks because this failure of the super committee with several issues on the table which must be worked out about it even of the year, unemployment benefit, the pending plan, the old one expired dec...

Politics will play out thursday when the house democrats plan to vote on extenting just the middle class tax cuts. republican negotiator congressman dave camp is worried democrats will vote and not allow republicans to alter the bill. now is the time for serious negotiations, he said. "not political stunts." >> the worst thing we could do in a fragile economic recovery is raise taxes on frankly anybody but especially the job creators. >> reporter: other tax issues are unresolved. i.r.s. commissi...