The AMT: What's Wrong and How to Fix it?
William G. Gale
Leonard E. Burman
Tax Policy Center; Maxwell School; National Bureau of Economic Research (NBER)
National Tax Journal, Vol. 60, No. 3, 2007
The alternative minimum tax (AMT) is a complex, unfair, and inefficient shadow tax system that threatens to affect 32 million taxpayers by 2010, many of them solidly middle class. Under current law, repealing the AMT without offsets would cost more than $850 billion through 2017. This paper summarizes the current and projected effects of the AMT and considers options to finance repeal. One attractive option we consider would be to combine AMT repeal with a four percent tax on AGI in excess of $200,000 for married couples and $100,000 for others.
Number of Pages in PDF File: 22
Keywords: AMT, alternative minimum tax, tax policy
JEL Classification: E62
Date posted: February 2, 2011