A Better Way To Fix The AMT

IBD ^ | Novemer 9, 2007

[Kaslin]

Fiscal Policy: To stop the Alternative Minimum Tax from imposing a big tax increase, Democrats are pushing — you guessed it — a big tax increase. Republicans have a better fix: taxpayer choice.

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For the past couple of years, congressional Democrats have surprised many by actually discovering a tax they don't like. The AMT was cooked up in 1969, when the federal income tax system was far more convoluted than today, as a means of preventing a tiny handful of fewer than 200 high-income households from using deductions to avoid all or almost all income tax liability.

Unindexed for inflation, this "tax on the superrich" has mutated into a tax that will hit more than 20 million Americans, with married couples in high-tax states (where a lot of Democratic voters reside) bearing much of the brunt.

With every Republican voting against it, the House of Representatives on Friday approved a measure to postpone the AMT's higher taxes for one year with a $76 billion tax hike that targets financial managers, foreign hedge funds and corporations that use foreign tax credits.

[gwilhelm56]

best way to fix amt ... ABOLISH IT!!

[Mygirlsmom]

Glad to see this is finally getting some notice. Paul Ryan is a good guy.

[depressed in 06]

... the House of Representatives on Friday approved a measure to postpone the AMT's higher taxes for one year with a $76 billion tax hike that targets financial managers, foreign hedge funds and corporations that use foreign tax credits.

I take this to mean that in 40 years we will all be hedge fund manager!

[The Great RJ]

Last year my wife and I had over $20,000 worth of medical expenses not covered by insurance. While we could claim a small fraction of that as a medical deduction, it caught us in the AMT and cost us more than $1400 in additional income tax. Even if you have good health insurance you can't afford to get sick.

However this is just a taste of what Charlie Rangle and the Democrats have in store for us with their tax "reform" not to mention added excise taxes that will push gasoline to over $4 per gallon.

[Kaslin]

That is why we must defeat them in 2008

[an amused spectator]

best way to fix amt ... ABOLISH IT!!

You clearly don't understand. The AMT cash is already racked, stacked and counted.

It's THEIRS, baby - "Eliminating the AMT would cost the government between $500 billion and $600 billion in lost revenue over the next decade, according to Congressional Budget Office estimates." (from a 2005 article)

Note the wording. I've seen similar wording in other articles on the AMT.

[upcountryhorseman]

The way to make up for the 50 billion derived from the
AMT is to CUT government agencies; also, gut the Farm Bill.

[devere]

I infer that there will be no bill passed, and the AMT is going to bite me next April.