Tax Code Monster

Though it has been an issue for years, there is fresh concern about the growing impact of the alternative minimum tax. Initially intended to ensure the highest earners pay at least some tax on their income, the AMT is now hitting the middle class harder than ever. The reason: It’s not tied to inflation. People are making more money than before, but the cost of living in the United States has gone up. $100,000 ain’t what it used to be. It’s simply unfair to make someone earning $100,000 pay roughly the same tax as someone making $1 million. And what’s amazing in all this is that Congress has repeatedly ignored the problem by refusing to scrap or reform the AMT. Meanwhile, many middle-income taxpayers are being eaten alive by this archaic tax. For more on what’s being done (or not being done) about it, check out this story by The Examiner’s Susan Ferrechio. Also, The Washington Post ran this very interesting story about the AMT and hedge funds.