House Passes Alternative Minimum Tax Patch Setting Up Battle With Senate

WASHINGTON – The House has voted to spare more than 20 million taxpayers from getting hit by the alternative minimum tax for another year.

The legislation would save mostly upper-middle-income taxpayers exposed to the tax an average $2,300 in 2008. It passed 233-189 on Wednesday.

But the one-year tax relief is still a long way from becoming law. The House bill would offset the $61 billion cost by raising taxes on oil companies and hedge fund managers. The Senate opposes increasing taxes to pay for the AMT relief.