Senate Abandons Economic Stimulus Measure, AMT Falls Victim

ByJohn S. McClenahen The legislative maneuverings were a bit complicated, but when the U.S. Senate abandoned an economic stimulus package last week, chances for repeal or modify of the corporate alternative minimum tax (AMT) were seriously hurt. Unless there is an unexpected new and broad-based move in Congress to reform AMT, a top tax priority among manufacturers, action is not likely to occur this year. One reason is a growing feeling in Washington that no business stimulus is needed to help the U.S. economy recover from recession. What's more, particularly in the wake of Enron Corp.'s collapse, aiding jobless workers has a lot more political appeal than giving businesses a tax break.