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

Gale, William G., The Amt: Projections and Problems. Tax Notes, July 7, 2003. Available at SSRN: or

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)

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