The Alternative Minimum Tax (AMT) attempts to insure that every person and company that makes money pays taxes, regardless of their deductions. In 2010, our treasury collected about $102 billion in Alternative Minimum Taxes. Nearly a flat tax, the AMT sets exemptions for income but does not allow itemized deductions such as mortgage interest, medical expenses and child deductions as regular tax returns do. If a taxpayerâ€™s regular tax is higher then the AMT figure, then there’s no AMT to pay. But if the regular tax calculation is lower, the difference between the two taxes is the amount of AMT that has to be paid on top of the regular taxes. The AMT exception levels are: $50,600 for single head of household, $39,375 for a married person filing separately, and $78,750 for a married couple filing jointly. The AMT tax rates are 26% up to a threshold and 28% after that. Up until recently, the AMT was not indexed for inflation which meant that middle class taxpayers were more and more susceptible to this 40 year-old tax over time. However, in 2013, the Obama Administration corrected this fault. Even so, opponents claim the AMT tax has outlived itsâ€™ usefulness, saying it was originally intended to apply to the very wealthy but now impacts people making more than $75,000 annually.
Pending Legislation: None
I oppose reforming current Alternative Minimum Tax policy
I support amending the 1986 IRS code to repeal the alternative minimum tax and wish to identify a legislator who will reintroduce H.R.1233 – Alternative Minimum Tax Repeal Act of 2003 (108th Congress, 2003-2004)