Lieberman Introduces Bill to Eliminate AMT on Incentive Options

Senator Joseph Lieberman (D-Ct) has introduced SB 1142 to eliminate the spread on the exercise of incentive stock options from the Alternative Minimum Tax. The bill is parallel to one introduced by Zoe Lofgren (D-CA) in the House, HR 1487. Lofgren's bill, however, is retroactive to January 1, 200, and is unlikely to pass in its current form. While Lieberman's support for the change suggests gathering and bipartisan momentum on this issue, any tax bill will face tough obstacles in light of the costs of the tax cut legislation just passed and the plethora of other tax cut bills other members of Congress are pushing.