The Amt: Projections and Problems
13 Pages Posted: 2 Oct 2003
The individual alternative minimum tax (AMT) operates parallel to the regular income tax, imposing a different income definition, deductions, and rates. Although it has historically applied to only a small share of taxpayers, the tax is projected to grow rapidly over the next decade. This will create problems of equity, efficiency, complexity, and transparency. It will also force policy makers to focus more attention on the issue, in part because many reforms will prove expensive. This papers provides new projections of AMT taxpayers and revenues, and examines the implications for tax policy and the AMT.
Keywords: alterantive minimum tax, income tax
JEL Classification: H0
Suggested Citation: Suggested Citation