Discussion:Tax Reduction and Reform Act of 2007 Goodbye AMT?

Rangel introduces Tax Reduction and Reform Act of 2007

This morning, House Ways and Means Chair Charlie Rangel (D-NY) introduced the "Tax Reduction and Reform Act of 2007." The bill would:

-- Repeal the AMT for post-2007 tax years, paid for with a tax increase on upper- income taxpayers;

-- Boost AMT exemption amounts for 2007 to the same level they were at for 2006, allow nonrefundable personal credits to offset regular tax and AMT for 2007, plus provide a one-year reprieve for a number of provisions expiring at the end of 2007, paid for with a variety of changes including taxation of carried interest of investment fund managers as ordinary income (to the extent not a reasonable return on investment capital), taxing deferred compensation plans of offshore hedge funds, and basis reporting on securities; and

-- Reduce the top corporate tax rate from 35% to 30.5%, paid for by reducing or eliminating a variety of business tax breaks (e.g., eliminating the Sec. 199 domestic production activities deduction and repealing the LIFO accounting method).

The bill's three titles are said to be self-contained in terms of offsets (it doesn't use revenues raised from the corporate side to pay for the individual reforms and vice-versa).

Rangel is said to be planning to consider the 2007 AMT relief provisions and the extenders as a separate bill, to be introduced as early as next week.

Here is a link to the bill itself. http://waysandmeans.house.gov/media/pdf/110/Summary%20for%20Distribution.pdf