Monday, April 23, 2007

AMT: It's about time Congress addresses this old tax hack

The Alternative Minimum Tax, put in place to keep wealthy individuals from getting away with paying little to no income tax, has not been adjusted (it should have been indexed to the cost of living) and nearly 20% of all taxpayers are estimated to be subject to it as early as next year.

Unfortunately, our current budget deficits and national debt will be harmed in some way if the AMT is simply indexed to inflation or some other measure. Those with especially high wages and/or incomes will have to be forced to pay a significantly higher tax bill.

Oh, well, it doesn't affect me! Seriously, something has to be done. Perhaps a revisit of a flat tax?

Democrats Craft New Tax Rules, New Image - washingtonpost.com

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