Fairmark: “AMT Deficit” Goes On-Budget; Change Has Profound Implications, by Kaye A. Thomas:
The Obama administration is poised to make a stunning change in budget policy. The change will add over $1 trillion to the projected federal debt — and that’s good. It puts an end to a charade that has persisted in past administrations, both Democratic and Republican. The “AMT deficit” is going to go on-budget.
Bloomberg: Obama Showers Wall Street Fees With Muni Stimulus, by Jeremy R. Cooke:
The stimulus law promotes municipal bonds by removing the alternative minimum tax, or AMT, penalty from debt sold to fund private activities such as airport runways and student loans. It also increases the size of bond issues qualified for tax exemptions when bought by commercial banks.
Special thanks to Professor Paul L. Caron of the TaxProf Blog.
From Jim Gust of The Trust and Wealth Management Marketing Blog comes the below:
Everyone complains that the Alternative Minimum Tax is snaring inappropriately an increasing portion of the upper middle class, and it is. But a recent Tax Notes item pointed to this piece from the IRS’ Statistics of Income that shows that more and more high-income taxpayers—the ones theoretically the object of the AMT’s affections—are wriggling free of its grasp. Looking at those with more than $200,000 in economic income (a slightly larger pool than those with more than $200K of AGI), the IRS finds that 10,680 of them paid no U.S. income tax at all in 2005, up from 5,028 in 2004 and 2,766 in 2000.
How do they do it?
To find out, read the rest of Jim’s post. Thanks Jim!