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House Passes Alternative Minimum Tax Patch Setting Up Battle With Senate

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.