Monday, April 04, 2011

Ditch the AMT

This article by Veronique de Rugy of the American Enterprise Institute discusses the insidious Alternative Minimum Tax (AMT) and how it going to soak more and more American Taxpayers. Originally a ploy to tax a few dozen millionaires who effectively paid no income tax (primarily because their income was inherited and primary in the form of tax-free municipal bonds), it has never been adjusted for inflation and is hitting more and more taxpayers every year.

Everyone states they wish to appeal it, but none want to forego the revenues. Solution: repeal it, along with the itemized deductions for mortgage interest and state and local taxes paid, then double the personal exemptions. That should make it flat revenue wise, plus a lot fairer to people who either rent or live in low tax states.

Plus, it would make my life easier and focus on more relevant tax planning.

1 comment:

Hershblogger said...

It's just an inflating tax on the hidden tax known as inflation.

That's a feature, not a bug.