[not sure if this belongs here or in the Economics forum or some other forum, but with many people asking what the Democrats want to accomplish, I thought it might fit here in US Politics.]
In the Washington Post this morning there's a front page article entitled
Alternative Minimum Tax Targeted - Democrats Seek Fix For Middle-Class Families:
Quote:
Democratic leaders this week vowed to make the alternative minimum tax a centerpiece of next year's budget debate, saying the levy threatens to unfairly increase tax bills for millions of middle-class families by the end of the decade.
The complex and expensive tax was designed to prevent the super-rich from using deductions, credits and other shelters to avoid paying the Internal Revenue Service. But because of rising incomes, the tax is expected to expand to more than 30 million taxpayers in 2010 from 3.8 million mostly well-off households in 2006.
|
That sounds good to me. It won't be cheap, but then, the Bush tax cuts weren't cheap, either. And if the Democrats want to include AMT in their top priorities, and do something positive for the middle class, hey, sign me up! Will Republicans in Congress vote against the middle class??
Here's a description of AMT and its impact.
Quote:
In simple terms, the AMT is sort of a flat tax with two brackets, 26 and 28 percent, and fewer deductions. Credits for dependents, medical expenses, and state and local taxes are all disallowed. Instead, taxpayers get a single big deduction, called the AMT exemption, which is set this year at $62,550 for married couples and $42,500 for singles. Taxpayers must compute their taxes both ways and pay whichever is higher.
The impact is harshest on taxpayers with annual incomes of $100,000 to $500,000. The truly rich typically are not affected because their regular tax rates already are higher than under the AMT.
This year, the AMT is expected to ensnare 3.8 million taxpayers. Next year, the AMT exemption is scheduled to drop precipitously, causing that number to balloon to 23 million households, according to the congressional Joint Committee on Taxation.
|
11-11-2006
Linear Mode
