Editorial: Blocking progress

Sunday, Dec. 23, 2007 | 6:55 a.m.

In the last days of the congressional session this year, Republicans obstructed any real progress and stopped a fiscally responsible plan to fix the alternative minimum tax.

The AMT, as it is known, was designed in 1969 to make sure the wealthiest Americans paid income tax. Because it was never indexed for inflation, it now reaches into the upper ranks of the middle class, affecting about 23 million people.

Democrats offered a plan to fix the AMT to exempt people in the middle class. To offset the cost of doing that, Democrats also proposed closing loopholes in the tax code that have benefited the wealthiest Wall Street financiers and chief executives. That provision was necessary under the Democrats' pledge to pay for everything they proposed, which they made when they took control of Congress this year.

The Democratic plan to fix the alternate minimum tax was reasonable and fiscally sound. Republicans, however, wanted no part of it because it would affect their patrons on Wall Street who pour millions into the GOP's campaign coffers.

Republicans held the bill hostage and refused to budge, even if it meant making people who shouldn't have to pay the tax pay it. Democrats had little choice. They backed off the plan to close the tax loopholes in exchange for a temporary fix on the AMT that will exempt those in the middle class from paying it in the coming year.

Democrats are understandably frustrated. The Republicans not only killed a fiscally responsible plan, they also claimed this as a victory. They say the tax increase would have hurt the economy. In the meantime, the Republicans ignore the soaring deficit they created and continue to add to it. As if that won't hurt the economy.

Republicans, led by President Bush, have become obstructionists. Instead of working for the interests of their large contributors, they should be working to improve the country by paying for government programs and reducing the deficit.