What the “Alternative Minimum Tax” Really Means for American Families

By Senator Kay Bailey Hutchinson

Albert Einstein once remarked, “The hardest thing in the world to understand is the income tax.” Since Einstein’s admission, our tax code has only grown more complicated and now it is poised to force 20 million middle class Americans to pay an extra $65 billion in taxes over the next four years. And if the tax cuts of 2003 expire, a staggering 115 million taxpayers will be hit with a $1700 tax increase. One of the most pressing domestic priorities facing this extended Congress is passing legislation to address the alternative minimum tax (AMT) that will slap millions of Americans with new taxes.

Although many Americans may not be focused on tax day just yet, the ears of most tax-payers perk up at the words “alternative” and “minimum” used along with “tax.” By its name, many taxpayers might assume the AMT is a good thing. A simpler “alternative” to the complicated and overly burdensome tax code would be welcome news. The idea of paying a lesser or “minimum” amount of taxes sounds good, too. But the AMT is not simpler and it does not allow taxpayers to pay lower taxes.

To the contrary, the AMT denies taxpayers many important deductions, so that middle class families subject to AMT actually pay higher taxes.

Here’s the entire article…


One Response to “What the “Alternative Minimum Tax” Really Means for American Families”

  1. Democrat Tax Alternatives Could Distance Them from Blue State Voters « Bill’s Weblog Says:

    […] Related article right here The next president will be judged by the adequacy of his (or her) response to the two overriding challenges facing America today — winning the war on terrorism and surmounting the fiscal consequences of the baby boomer retirements without suffocating tax increases. […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: