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Alternative Minimum Tax= we're all screwed

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fiestadeac

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Don't know if anyone saw this yet.

http://www.bloomberg.com/news/2012-...on-fiscal-cliff-comes-from-alternate-tax.html

If Congress doesn't make action on the fiscal cliff the number of people who pay the AMT jumps from 4.4 to 32.9 million. Since this isn't being adjusted for inflation it affects a large number of people if you couldn't tell. I believe (could be wrong about this # for the current year) that the cutoff is individuals who make over $175,000, they pay an additional 26% after state and federal taxes.

Look I'm no where close to this cutoff but that's ridiculous. If you are in a state like NY, NJ, or CT you're in trouble even though that salary doesn't make you that ultra wealthy in those states. I hope that you all see the need to fix this whichever way you lean and that our politicians on both sides of the aisle put their petty differences aside and get rid of this BS
 
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The fact that the AMT has never been permanently adjusted for inflation and income increases is one of the biggest failings of our Congress over the past few decades. It would literally take like 2 hours to make a permanent fix, yet these idiots go through the same charade very few years.
 
They will pass the patch last minute with the research tax credit.
 
2&2 Slider To Leyritz said:
The fact that the AMT has never been permanently adjusted for inflation and income increases is one of the biggest failings of our Congress over the past few decades. It would literally take like 2 hours to make a permanent fix, yet these idiots go through the same charade very few years.
Click to expand...

You're right it would be simple to fix it, but our geniuses on the hill see this as an opportunity to collect more. Why change the # of people affected if it would lead to less collected in taxes?
 
It's not an additional 26% - you pay the higher of your regular rate or the AMT rate. There is also a 28% rate for higher incomes. The exempted income amount will be reduced by $15k for individuals and $30k for married couples if it isn't fixed.

The whole program is a sham - originally designed to make sure around 20,000 people paid some tax, it hit around 4 million in 2011.
 
I have a masters degree in tax law and I don't understand the AMT.
 
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