Friday, June 08, 2007

sink the amt

Democrats in Congress are considering ways to keep the Alternative Minimum Tax from hitting more and more middle class Americans. The AMT, if you don't remember, was passed in the late 1960s as a way to keep the very wealthy from dodging all their taxes -- but Congress forgot to index it for inflation so now it's hitting people who are by no means rich.

One plan would get rid of it entirely and would raise income taxes on families earning more than $200,000 (or singles making $100,000) by 4%.

Another plan would keep AMT but would abolish it for families making under $250,000, funding the lost revenue by raising taxes by 4.3% on income over $500,000. Massachusetts Democrat Richard Neal says this would hit 2% of taxpayers.

I think I like the latter plan better. But you know the Republicans would call it a tax hike, despite it being neutral or tax-saving for 98% of Americans. Tax hikes are worst in Republican-Land when they hit the very rich.


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