Monday, December 17, 2007

Taxing Time For Democrats

Taxpayers hit by the AMT can't deduct state and local taxes from their federal income tax bill. Sooner or later, that puts downward political pressure on state and local spending. And that, in turn, threatens the vested interest of a key Democratic constituency, the public employee unions. Democratic voters in suburban New Jersey, for example, who feel far from rich, face a substantial tax increase if they're suddenly covered by the AMT. They may take their revenge on Democratic candidates and on New Jersey public employee union members.

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