House Approves AMT Patch

The House passed a bill increasing taxes on private equity, hedge fund and venture capitalists to prevent the alternative minimum tax from hitting millions of middle-class taxpayers this year.

The vote, along party lines, was 216-193.

The vote is a victory for Democrats, who faced stiff opposition from Republicans and the business community over the tax increase. And private equity firms spent millions of dollars opposing the tax hike.
Congress established the AMT in 1969 to tax 155 rich taxpayers who were evading taxes. If left unpatched, it would hit as many as 23 million Americans this year.

Most members of Congress dislike the AMT, but they disagree over whether to impose new taxes to pay for the $77 billion bill.

Because the AMT has spiraled far beyond its original intentions, Republicans argued that Congress could pass a one-year patch without any revenue raisers.