Two of the House members whose constituents are most affected by the runaway alternative minimum tax (AMT) are members of the Democratic leadership: Majority Leader Steny Hoyer and Chris Van Hollen, chairman of the Democratic Congressional Campaign Committee. Both are from Maryland, representing in part the affluent suburbs of Washington, D.C.
The AMT, originally intended to catch millionaires who do not pay taxes, now hits middle-income earners because it was not indexed for inflation. According to a recent staff report of the House Ways and Means Committee, 107,990 tax returns in Van Hollen's district and 102,221 in Hoyer's are affected by AMT.
Congress recessed for Thanksgiving without fixing the problem in time to permit the Internal Revenue Service to make timely tax refunds. The House districts most heavily impacted by AMT are represented by 91 Democrats and 93 Republicans. The four hardest-hit districts are in New Jersey.
DOLES RAISING DOUGH
Sen. John Ensign, chairman of the National Republican Senatorial Committee (NRSC) who is losing the funding battle to his Democratic counterparts, is turning for help to a Washington power couple: Robert and Elizabeth Dole.
The NRSC is asking $28,500 a ticket to attend a Dec. 13 evening reception at the Washington residence of the Doles. Former Sen. Bob Dole has been a nominee for both president and vice president. Sen. Elizabeth Dole is Ensign's predecessor at the NRSC.
Lobbyists who mainly give to Republicans are hedging their bets for 2008 or even increasing what they give Democrats because they expect an increased Senate Democratic majority.