Senate approves tax fix; House pushing alternate version

Senate approves tax fix; House pushing alternate version

CAPITOL HILL- The Senate has voted overwhelmingly to block a tax hike that could otherwise average a payment of $2,000 for each of about 25 million taxpayers.

The Senate bill would do away with the so-called alternative minimum tax for another year, but it does not offer a way to replace the revenue. How to pay for it figures to be a sticking point in negotiations with the House. Its version of a package to halt the creeping AMT would offset the revenue loss with new taxes on wealthy investors.

The White House is praising the Senate version and is encouraging the House to go along.

If Congress doesn't find a speedy compromise, the Internal Revenue Service says it may have to postpone refunds worth billions next month for taxpayers who file early. The IRS says it takes
about seven weeks to reprogram changes into its system.