The many new tens of millions that will pay AMT better save a chunk of money now, for the bill will be due in April on money they are earning NOW- no time for withholding to catch up
true, that.
“23 Million Americans Hit by a Tax Hike, But They May Not Know It Yet”
http://cnsnews.com/news/article/millions-middle-class-americans-may-soon
I wouldn’t have a problem with the AMT if it really was what it claims to be — an “Alternative Minimum Tax”.
Logically, you would think this meant “everybody should pay some minimum percentage of their income in Federal Income Tax.” Say 10%. But of course it doesn’t mean that at all, since half the people pay 0% and another quarter pay less than 10%. If it really did force everybody to pay 10%, the Individual Income Tax would bring in $1.4T — exactly the same revenue as the current tax system extracts from the half of Americans who actually pay income taxes. As a bonus, that $1.4T would replace Corporate Income Taxes as well, and allow the US to be one of the few nations that didn’t tax corporations to death.
Instead ... the AMT exists to make sure the successful people are denied the deductions and tax credits available to the unsuccessful. Somebody has to pick up the tab for the bottom 50% that pay nothing, right ?