Wednesday, February 05, 2003

AMT? What AMT?

From Max:
A measure not proposed by the President, but a certain cost in the near future, is relief for the Alternative Minimum Tax (AMT). The AMT is a provision of the individual income tax aimed at high-income persons. It is not indexed to inflation, and as a result its coverage will dramatically expand over the next ten years. This increased tax burden will effectively deprive tens of millions of taxpayers the tax cuts passed in 2001, as well as any that might be enacted this year. There is no question that Congress will be forced to consider AMT relief, and it will be very expensive. A mid-range estimate for the cost of fixing the AMT, based on work at the Urban Institute, is $500 billion.
Max Max Max. Bush doesn't have to worry about AMT. It's only a problem because it is indexed to inflation. But if we have no inflation then it won't be a problem? No? Hell! If we have deflation then that means the budget picture will actually get better! Right? Right?

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