Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Senate panel takes aim at 'stealth tax'
Boston.com/Reuters ^ | 22 May 2005 | Donna Smith

Posted on 05/22/2005 10:58:31 AM PDT by Radix

WASHINGTON (Reuters) - It is called the "stealth tax" because most U.S. taxpayers are unaware of it, but in a few years, millions of people will pay the so-called alternative minimum tax that only the rich were supposed to pay.

The alternative minimum tax, or AMT, was enacted in 1969 amid reports that 155 taxpayers making more than $200,000, a tidy sum at the time, paid no taxes at all because of deductions and other income tax exemptions.

But what started as a tax to ensure that the wealthiest Americans did not escape paying federal taxes soon will hit more middle-class earners. This year, about 3 million people will pay the AMT and that will grow to 35 million by 2010 unless Congress acts.

(Excerpt) Read more at boston.com ...


TOPICS: Culture/Society; Government
KEYWORDS: 109th; amt; senate; taxes; taxreform; you

1 posted on 05/22/2005 10:58:31 AM PDT by Radix
[ Post Reply | Private Reply | View Replies]

To: Radix; Taxman; pigdog; Principled; EternalVigilance; rwrcpa1; phil_will1; kevkrom; n-tres-ted; ...
A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information:


2 posted on 05/22/2005 11:50:22 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ancient_geezer
We'll still see people here telling us that the income tax is the way to go. It boggles the mind that a system so bad and so intrusive and so expensive and so ineffective at collecting revenue has any defenders.

Curiously, the anti-reformers don't have an alternative, they just attack any proposed alternative. Obstruct and then obstruct some more...

3 posted on 05/22/2005 11:55:02 AM PDT by Principled
[ Post Reply | Private Reply | To 2 | View Replies]

To: Principled

Curiously, the anti-reformers don't have an alternative, they just attack any proposed alternative.

Just the application of the laws of thermodynamics to politics.

Ever notice how easy it is to totally demolish something, rather than rather than build the same thing from scratch?

Choas is so much easier to achieve, it doesn't require a plan or directed effort, just undirected destuctive energy is sufficient to destroy any edifice no matter who well constructed. A thousand dollar bomb is indesctiminate in what it can destroy, that is why one can be so effective at destorying multi-million dollar buildings.

4 posted on 05/22/2005 12:07:20 PM PDT by ancient_geezer (Don't reform it, Replace it!!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Principled
Obstruct and then obstruct some more...

And when you're finished obstucting, find some minutia that can be dragged through the mud and yell 'gotcha' with it. Spending endless bandwidth criticizing the gross vs. net is the first example that comes to mind. The anti's are never going to play fair because for them it is a war. Who was it that said one of them must make a living selling "How to Avoid Income Tax" kits for 49.95? And if you don't agree with them it is because you're stupid.

Kind of reminds me of the Kerry crowd after the 2004 elections.

5 posted on 05/22/2005 12:23:21 PM PDT by groanup (http://fairtax.org)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Principled

The antis are dwelling in the short term without regard to the long term benefits for the nation, their children and even themselves in the long run. It goes beyond self interest to a selfishness that exceeds my ability to comprehend it.


6 posted on 05/22/2005 12:54:47 PM PDT by Badray ((Under construction))
[ Post Reply | Private Reply | To 3 | View Replies]

To: Badray

You're right, badray. They want to be able to make $49.95 on "Pay No Income Tax" kits. They want to be able to redistribute the money based on goverment decisions. They want to continue the unbounded growth of government. A bad lot, to be sure.


7 posted on 05/22/2005 12:57:06 PM PDT by Principled
[ Post Reply | Private Reply | To 6 | View Replies]

To: groanup
Who was it that said one of them must make a living selling "How to [Pay No] Income Tax" kits for 49.95?

He he... and remember, 100-22=88 LOL.

This is the same poster who insists on using the tax exclusive rate for the nrst, but says it's impossible to use tax exclusive rates for the income tax. Ask him why, I dare you. His fundamental ignorance will astound you. I'll try to find the post and I'll link it...

8 posted on 05/22/2005 1:13:49 PM PDT by Principled
[ Post Reply | Private Reply | To 5 | View Replies]

To: Principled

Does anyone know at what amount the AMT kicks in these days?


9 posted on 05/22/2005 2:21:41 PM PDT by Publius6961 (The most abundant things in the universe are hydrogen, ignorance and stupidity.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Publius6961
Our current system is too convoluted to understand ... but I think it's about 90-100k and also depends on deductions like kids, state taxes, and other deductions...

If this is right, a teacher and a firefighter could have to pay it soon - cuz they're rich ya know.

I reckon people will know about it when it hits 'em. Till then, it's just taxing the other guy eh?

10 posted on 05/22/2005 2:38:12 PM PDT by Principled
[ Post Reply | Private Reply | To 9 | View Replies]

To: Radix
The alternative minimum tax, or AMT, was enacted in 1969 amid reports that 155 taxpayers making more than $200,000, a tidy sum at the time, paid no taxes at all because of deductions and other income tax exemptions.

It was enacted out of pure, evil envy and jealousy. If it isn't gotten rid of, I hope whoever pushed for it pays the most. Thieves, whether they use proxies ("politicians") or not, ought to be punished.

11 posted on 05/22/2005 2:47:16 PM PDT by FreeKeys (Running Condi in '08 will destroy the anti-American moonbat wing of the DemocRAT party for good.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Principled; Conservative Goddess

It goes beyond the tax protesters to the ones who seem to genuinely want to keep the current system. I won't even fault them that much because they do focus on the fraud that the IRS and the income tax is. Most people will not risk fighting the IRS by refusing to pay, but they become aware that something has to be done to change things.

Another big problem is with the hardheaded purists (and I am a hardheaded purist in my own right) that insist the income tax is evil and wrong, but that we should just eliminate the spending.

There's a better chance that I am gonna be slim, good looking, and rich than Congress will cut spending.


12 posted on 05/22/2005 5:23:05 PM PDT by Badray
[ Post Reply | Private Reply | To 7 | View Replies]

To: Radix
The Left loves taxes. Heck, they don't even want to get rid of the unpopular death tax. So why would they be concerned over a tax that targets the wealthy?

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
13 posted on 05/22/2005 5:28:36 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Badray

Nobody wants to keep the current system around here. Liking or despising the current system has little or nothing to do with criticism of HR 25.

For my part I perfer the Forbes Flat Tax with a 17% rate. I want the SS and Medicare taxes kept seperate, so they can be privitized.

I like D Armey's proposal to end withholding and make taxpayers write and send in their taxes quarterly.


14 posted on 05/22/2005 5:37:54 PM PDT by Leto
[ Post Reply | Private Reply | To 12 | View Replies]

To: Leto
Nobody wants to keep the current system around here. Liking or despising the current system has little or nothing to do with criticism of HR 25.

Where have you been? There are plenty here who are unwilling to let go of the current system.

For my part I perfer the Forbes Flat Tax with a 17% rate. I want the SS and Medicare taxes kept seperate, so they can be privitized.

So, you want to perpetuate a huge, expensive, and intrusive federal bureaucracy that will continue to penalize the hard working and successful, AND do so at a combined rate or 32% of income versus 30% of expenditures? In heaven's name, WHY? Is there any support in Congress for Forbes' plan? Do you realize that our current mess started as a flat tax?

I like D Armey's proposal to end withholding and make taxpayers write and send in their taxes quarterly.

That is a bandaid and while it might make people realize the expense of government, more likely, it will just make people into tax criminals because they won't be able to save the money until it's due.

The Fairtax is simple, fair, and visible. What's wrong with that? Please reexamine this and the info at the links at ancient_geezers posts.

15 posted on 05/22/2005 6:05:44 PM PDT by Badray
[ Post Reply | Private Reply | To 14 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson