Stealth tax...Part II

[Bullypulpit]

<blockquote>The AMT was enacted in 1970 to prevent very wealthy taxpayers from pyramiding tax deductions and literally paying no tax at all. The idea was that no matter how many deductions you had, you were still required to pay some tax based on an alternative tax schedule. That made sense.

But now, due to inflation coupled with administration tax policies, the AMT is hitting millions of ordinary families, many earning well under $100,000 a year. Within five years, 37 percent of people earning between $50,000 and $75,000 and 73 percent of those with incomes between $75,000 and $100,000 will pay the AMT, compared with less than 3 percent three years ago. Nearly all families earning over $100,000 will pay it, according to a Brookings Institution study. - <a href=http://www.prospect.org/web/page.ww?section=root&name=ViewWeb&articleId=9476><i>The American Prospect</i></a></blockquote>

With all of his talk about "tax simplification" and "letting people keep more of their money", it is increasingly clear that Dubbyuh is talking about his core constituency...Those who ponied up BIG BUCKS to his, and the RNC's, campaign war chest. His tax plan aims to increase the incentive for savings and reduce taxes on investment income. Again, the targets of these forms of tax-relief aren't the middle class.

The AMT stands untouched because the Administration is going to need every last dime it can squeeze out of the middle class to pay for previous rounds of tax-cuts which, again, benefitted the wealthiest one percent of Americans.

<blockquote>"Average people voting for Republicans because of the tax-cuts is like mice voting for traps because of the cheese."</blockquote>

Citations:

http://www.prospect.org/web/page.ww?section=root&name=ViewWeb&articleId=9476

 

[dilloduck]

<blockquote>The AMT was enacted in 1970 to prevent very wealthy taxpayers from pyramiding tax deductions and literally paying no tax at all. The idea was that no matter how many deductions you had, you were still required to pay some tax based on an alternative tax schedule. That made sense.

But now, due to inflation coupled with administration tax policies, the AMT is hitting millions of ordinary families, many earning well under $100,000 a year. Within five years, 37 percent of people earning between $50,000 and $75,000 and 73 percent of those with incomes between $75,000 and $100,000 will pay the AMT, compared with less than 3 percent three years ago. Nearly all families earning over $100,000 will pay it, according to a Brookings Institution study. - <a href=http://www.prospect.org/web/page.ww?section=root&name=ViewWeb&articleId=9476><i>The American Prospect</i></a></blockquote>

With all of his talk about "tax simplification" and "letting people keep more of their money", it is increasingly clear that Dubbyuh is talking about his core constituency...Those who ponied up BIG BUCKS to his, and the RNC's, campaign war chest. His tax plan aims to increase the incentive for savings and reduce taxes on investment income. Again, the targets of these forms of tax-relief aren't the middle class.

The AMT stands untouched because the Administration is going to need every last dime it can squeeze out of the middle class to pay for previous rounds of tax-cuts which, again, benefitted the wealthiest one percent of Americans.

<blockquote>"Average people voting for Republicans because of the tax-cuts is like mice voting for traps because of the cheese."</blockquote>

Citations:

http://www.prospect.org/web/page.ww?section=root&name=ViewWeb&articleId=9476

Thanks for the info Bully. Are thier any organization or politicians working on methods to change this so we can support thier efforts?

 

[Avatar4321]

You know as much as i hate taxes i cant help but feel that Bully doesnt give a damn about taxes. I mean after all he has critisized President Bush for his tax cuts for a long time.

 

[dilloduck]

You know as much as i hate taxes i cant help but feel that Bully doesnt give a damn about taxes. I mean after all he has critisized President Bush for his tax cuts for a long time.

I just thought I would give him a chance to be of some help to us.

 

[Merlin1047]

But now, due to inflation coupled with administration tax policies, the AMT is hitting millions of ordinary families, many earning well under $100,000 a year. Within five years, 37 percent of people earning between $50,000 and $75,000 and 73 percent of those with incomes between $75,000 and $100,000 will pay the AMT, compared with less than 3 percent three years ago. Nearly all families earning over $100,000 will pay it, according to a Brookings Institution study.

Personally, I don't see the problem. If it is undesirable to let someone earing 5 mil a year claim so many deductions that they pay no tax, why then is it reprehensible to do the same for someone earing 100 thousand?

Bad Bush. Baaaaaad Bush!

Bah - your sister is a conservative.

 

[5stringJeff]

Bully, you posted on the exact same topic a few weeks ago, and I'll say the exact same thing: I hope Bush abolishes the AMT. But where was Bill CLinton for eight years on the AMT?