Bush's Secret Tax Hike [Alternative Minimum Tax]

Slate ^ | April 13, 2006 | Daniel Gross

[seacapn]

This tax season is shaping up as a banner one for the federal government. The strong stock markets have produced a gusher of capital gains taxes. Corporations are continuing to reap massive profits, and so they're paying more in corporate income taxes. Lehman Brothers economist Drew Matus told Barron's that he expects "a 17 percent jump in tax receipts this season (not including regular withholding), and just a 5 percent increase in refunds." The upshot: Tax-season payments could be $59 billion higher than last year.

Should these projections materialize, Republicans will trumpet them as a validation of the supply-side tax-cutting mania. Just reduce taxes on capital and high-earning individuals, and tax revenues will magically leaven. But in fact, the rising revenues may prove exactly the opposite, Democratic point: If you raise taxes on people who make a lot of money, you'll end up with more tax revenues. In addition to windfalls from capital gains and corporate taxes, Matus noted that rising receipts attributable to the Alternative Minimum Tax are filling Washington's coffers. "My suspicion is the AMT has captured a large amount of the tax cut for upper-income earners," he told Barron's. In other words, tax receipts are up in part because many of the rich are paying higher taxes.

[seacapn]

I'm posting this very negative article because it points out something important - the AMT is a very anti-family tax. It penalizes marriage, and it especially penalizes families with children - the AMT punishes people who take "too many" deductions. This is something the Republican Congress needs to address and attack NOW. We heard promises of AMT reform back in 2005... where is it?

[conservativecorner]

Tell me about it. Monday is check writing day. I was confused by the instructions for the AMT when the first said, "bend over and assume the position".

[jjm2111]

"We heard promises of AMT reform back in 2005... where is it?"

Heck, I've heard of AMT reform back in 1998. It isn't "Bush's Tax", but this is one of the reasons why I'm so pissed off at the GOP right now. Four years of full control of the federal government and they couldn't do anything about this? Oh, but we can spend billions in feel-good no-child-left behind nonsense and on a bridge to nowhere.

[IamConservative]

This tax season is shaping up as a banner one for the federal government. The strong stock markets have produced a gusher of capital gains taxes. Corporations are continuing to reap massive profits, and so they're paying more in corporate income taxes.

Only when a Republican is president could this type of economic news be viewed as a negative by the media. Slate in MSM obviously, but the clearly reflect the liberal viewpoint.

[P-40]

We heard promises of AMT reform back in 2005... where is it?

We were discussing getting rid of the AMT over twenty years ago...back when it was only a nineteen or so billion dollar problem.

[mnehring]

I love how Slate frames this as 'Bush's Tax Hike'.. but it's from Slate, everything there is Bush's fault..

[kx9088]

Yeah right? LOL! I mean come on, Bush cut taxes for the rich and here they are paying more because they earned more. Something you'll never hear on the MSM.

[libstripper]

Tell me. I got burned for $3,200 of AMT this year and I'm single without any deductions. All it took was a really big capital gain.

[seacapn]

That's true. But the thing is, if the AMT suddenly hits 20 million taxpayers on Bush's watch, people will make that connection.

[conservativecorner]

No personal exemptions and a percentage of your itemized deductions, as well as not being able to use home equity like regular Americans equals pure #@%*!$&&!

[CPOSharky]

Just reduce taxes on capital and high-earning individuals, and tax revenues will magically leaven. But in fact, the rising revenues may prove exactly the opposite...

Dear Daniel Gross,

Reducing taxes has ALWAYS resulted in a rising economy and increased federal revenue. EVERY TIME, even when demontrats have done it. (Remember JFK's tax cut?).

What kind of idiot would think Dannie's logic is valid? (Yeah, I know, a Bush hating commie socialist libidiot.)

[BIGZ]

Framing this as Bush's Secret Tax is totally ingenuous. The AMT was enacted into law in 1970 when the outcry that their were a few individuals making what was then outrageous amounts of income with no taxes paid, due to some interesting tax shelters.

This tax of course had nothing to do with the so called economic boom and budget balancing during the clinton years.

You can argue this tax any way you want but it is not a Bush tax.

[Just mythoughts]

I consider it MacCain's tax increase, he sure knew how to protect terrorists by pushing through is anti-torture protection bill but he said screw you tax payers by opposing any making of tax cuts permanent.

Guess maybe he will use that juicy little pretending to be conservative seduction during his prezy self anointment campaign.

[seacapn]

It's not Bush's tax. But it will become part of his legacy unless he reforms it.

[Hammerhead]

yeh, I made only 79K last year, sold two houses, paid my capital gains, but now owe and EXTRA 11K because the AMT!!!!


Loan time.

[A.Hun]

Granted the AMT is a dumb tax...but here is the key sentence-

"My suspicion is the AMT has captured a large amount of the tax cut for upper-income earners," he told Barron's

This goober is guessing. Just a drive by shot at GWB to negate the good his tax cuts have done.

[Tulane]

LOL...we got the same instructions. I told my wife she never does that for me!

[trebb]

Bush didn't institute the AMT and the Congress is unwilling to abolish it as they still cater to the "tax the rich" cries, even as the AMT starts to infiltrate down to the middle class.

I guess that with Bush in the hot seat, folks will blame him for everything until we have Utopiaa, then they'll claim things are too damn good and blame him some more.

[Tulane]

Exactly...like GWB was the guy who pushed through the AMT...let's see...which congress did that...hmmm...

[conservativecorner]

LOL BUMP! If ya didn't laugh you would cry. It's so damn unfair that I will duct tape my head on Monday to keep my head from blowing up.