The AMT: What's Wrong and How to Fix it

22 Pages Posted: 19 Jul 2014

See all articles by Leonard E. Burman

Leonard E. Burman

Tax Policy Center; Maxwell School; Urban Institute; Syracuse University - Center for Policy Research

William G. Gale

Brookings Institution

Greg Leiserson

Urban Institute

Jeffrey Rohaly

Urban Institute

Date Written: September 2007

Abstract

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.

Keywords: alternative minimum tax

JEL Classification: H2

Suggested Citation

Burman, Leonard E. and Gale, William G. and Leiserson, Greg and Rohaly, Jeffrey, The AMT: What's Wrong and How to Fix it (September 2007). National Tax Journal, Vol. LX, No. 3, 2007. Available at SSRN: https://ssrn.com/abstract=2467637

Leonard E. Burman

Tax Policy Center ( email )

Urban Institute
2100 M Street NW
Washington, DC 20009
United States
2022615742 (Phone)

Maxwell School ( email )

400 Eggers Hall
Syracuse, NY 13244
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315-443-3114 (Phone)

Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States
202-261-5248 (Phone)

Syracuse University - Center for Policy Research ( email )

Syracuse, NY 13244
United States

William G. Gale (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Avenue, NW
Washington, DC 20036
United States
202-797-6148 (Phone)
202-797-6181 (Fax)

Greg Leiserson

Urban Institute

2100 M Street, NW
Washington, DC 20037
United States

Jeffrey Rohaly

Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

HOME PAGE: http://www.taxpolicycenter.org

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