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11-19-2007, 04:00 PM | #1 | |
Senior Member
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
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Quote:
The bill has proposed offsets ("revenue raisers") to help fund the proposed AMt patch. This is standard on the Hill. You cant propose cutting a tax without raising a different one. Also, keep in mind that the AMT patch is only one of several things being proposed.....also included is another extension for fed R&D, taxation on stocks, and other corporate incentives. In the case of AMT, from a policy perspective, it would make little sense to give the public a reprieve from AMT and then raise income taxes for higher income earners....since they are the ones who are paying AMT to begin with. Thus far, some revenue raisers that have been suggested include several significant changes in the taxation of private equity investments. Foremost, the legislation would raise an estimated $25.6 billion over 10 years by requiring investment fund managers to treat income received from carried interests as compensation taxed as ordinary income and subject to payroll taxes to the extent that it does not represent a reasonable return of investment. Capital gains rates would still apply to the amount that represents a reasonable return on capital. Anyway, without boring everyone, the point I am trying to make is that revenue raisers that do not directly kill individuals will offset the AMT patch. Fun stuff.
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11-19-2007, 11:10 PM | #2 | |
Junior Member
Join Date: May 2006
Location: Mountain View, CA
Posts: 68
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Quote:
I'm auditing a VC right now, and the tax people were talking about this when I overheard it. I really need to brush up on my tax stuff, I passed the Reg portion of the CPA exam a year ago, but forgot everything. Off topic, just curious if this quote thing works as easily as it seems: |
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12-20-2007, 12:34 AM | #3 |
Senior Member
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
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After much wrangling between Dems and Reps, the AMT patch for TY 2007 has been passed. President Bush will likely sign it tomorrow or Fri.
The Reps stood firm and forced the Dems into a patch that basically had not revenue offsets. Not sure how we will pay for this patch without offsets somewhere, but at least it has been passed. Now the rub....because it has taken so long to pass the patch, it is going to take awhile for the Service to reconfigure all their software to reflect the patch. Some estimates are at 8 or 10 weeks. This means no income tax returns processed until at least early to mid February. Breathe easy....for now. The patch is only good for one year.
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Fitter. Happier. More Productive. "Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte |
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