Fight Moves to Senate as House Passes AMT, Terrorism Insurance Bill

Despite Senate opposition and threats of a White House veto, the House on December 12 passed legislation to protect millions of middle-class taxpayers from being hit by the alternative minimum tax (AMT) this year. However, to pay for AMT relief, the bill would impose new taxes and liabilities, including changes in the treatment of deferred compensation for hedge fund managers, and would delay interest allocation rules for companies doing business overseas. The Senate-approved AMT measure does not include offsetting tax hikes.

Also on December 12, the House voted 303-116 to expand and extend for seven years the federal terrorism insurance program. The Terrorism Risk Insurance Act (TRIA) protects the availability of terrorism insurance coverage for millions of American businesses and limits lawsuits that seek to hold businesses liable for terrorist acts. The White House favors a narrower Senate bill that extends but does not significantly expand the program.

Read the Chamber letter opposing the AMT Relief Act.

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