Business news with words alternative+hike+tax. 4 news.

The House passed a one-year “patch” for the alternative minimum tax on Wednesday, acting to shield taxpayers from an average hike of about $2,000.

The measure would give relief to 23 million people but raise levies on big investors. It now goes to the Senate. Capping a spirited debate, the Democratic-led House voted Friday to shield more than 23 million Americans from a tax hike this year under the alternative minimum tax -- and hit up wealthy managers of private equity firms and hedge funds to make up the difference.

Washington is abuzz about the tax proposal introduced recently by House Ways and Means Chairman Charles Rangel (D-N.Y.). The bill tackles a host of tax policy matters but its centerpiece proposes to repeal the Alternative Minimum Tax (AMT) and offset that revenue loss with an $800 billion tax increase on the roughly 3.5 million taxpayers earning above $200,000 a year. The tax increase hikes marginal tax rates by nearly 5 percentage points. Republicans have been quick to attack this tax increase on small business owners and entrepreneurs and rightly point out that the high marginal tax rates in the Rangel plan would negatively impact the economy.

Those who oppose hiking taxes on private equity partnerships and hedge fund managers have been trying to make the case that any increase would end up hurting policemen, firemen, teachers and anyone else with a pension, since pensions are major investors in alternative investment funds.