Alternative minimum tax


The looming disaster
Here's a great article from the Denver Post.

As of Jan. 1, a special levy originally created in 1969 to prevent just 155 wealthy people from "zeroing out" their tax liability through excessive exemptions, credits and other deductions will theoretically ensnare about 18.9 million households. That's more than quintuple the 3.5 million who fell under its provision this year.

The increase stems from the fact that the AMT was never adjusted for inflation. Although its impact was periodically eased by a series of temporary "patches," the latest stopgap measure will expire Jan. 1, and the amount of income exempt from the tax is to drop to $45,000 for a couple in 2006 and $33,750 for an individual.

I'd say it's a good reason to get rid of the tax system entirely, but I don't think that will happen.

— NeoWayland

Posted: Mon - December 26, 2005 at 05:01 AM  Tag


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