Clinton tax legacy


Eleven million Americans are about to be very surprised by much higher taxes
This one speaks for itself.

A Joint Tax Committee (JTC) analysis requested last year by Senator Charles Grassley of Iowa shows that about 11 million more Americans will have to pay the AMT next year thanks to the higher post-1993 AMT rates. The House Ways and Means Committee calculates that if you live in a high-tax state (such as California or New York) and have two or more kids, you're very likely to be hit with the AMT this year even if your income is as low as $75,000.

All of which means that if Democrats really want to spare Joe Lunchbucket from the AMT, the cleanest solution is to repeal the Clinton AMT rate hikes. The nearby chart, prepared by the American Shareholders Association based on Joint Tax data, compares the number of filers who will be hit by the AMT under current law and what would happen if the AMT rate was moved back to the pre-Clinton 24% and the exemption was indexed for inflation at the 2005 level of $40,250 ($58,000 for a joint return). Going back to the pre-Clinton rates would leave only about 2.6 million tax filers subject to an AMT penalty next year instead of 23 million under current law.

As the author pointed out, this one will be passed off as a direct result of the Bush tax cuts when really it dates from the Clinton Administration.

Politicos always think that your money is theirs to spend as THEY choose unless you can prove otherwise. As it stands, the whole income tax is based on something the government says YOU owe.

— NeoWayland

Posted: Fri - February 23, 2007 at 01:14 PM  Tag


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