Wednesday, July 17, 2013

By 2008, the AMT Will Cost More to Repeal Than the Regular Income Tax

library William G. Gale, Leonard E. Burman, Jeff Rohaly

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

© TAX ANALYSTS. Reprinted with permission.

This report is available in its entirety in the Portable Document Format (PDF).

Taxpayers pay alternative minimum tax (AMT) if their AMT liability exceeds their regular income tax. Originally targeted at a few high-income households who paid no federal income tax, this class tax is about to become a mass tax. The projected expansion occurs because the AMT is not indexed for inflation and because last year's tax cut steadily pares regular income tax obligations without providing significant and sustained AMT relief. The increases are troubling because the AMT is notoriously complex and has dubious effects on equity and efficiency.

This report is available in its entirety in the Portable Document Format (PDF).


View the original article here

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