Quote:
Originally Posted by thatguy
Just wait and see what happens if the Hillary/Obama takes office and they let the tax cuts expire. The AMT will shift back down and hit so many more people. I'm not sure but I think the tax bracket would start around low-mid $100k.
FYI: AMT= Alternative Minimum Tax= figure your taxes as you normally would and if you are in this bracket you re-figure them to the AMT and you pay the HIGHER amount. It was originally targeted at less than 100 people (the highest bracket at the time) who had enough exemptions they paid little in taxes. Somebody just forgot to adjust it for inflation over the years and now it hits millions of people.
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As far as I can remember I've been subject to the AMT tax and IMO it's about the most unfair tax I've ever seen. You're right though it's already been affecting a much larger portion of the population than it was originally created to affect. Them boys on the hill aren't moving too fast to adjust or take it off the books though as it's free money for them.