Should the AMT replace the regular income tax? Q.Should the AMT replace the regular income tax? A.The notion that taxpayers should not have to calculate their tax liability twice—once for the regular tax and again for the alternative minimum tax (AMT)—has merit. It is less clear that making the AMT the only income tax in town would improve the tax system’s efficiency, simplicity, or fairness. Read more about Should the AMT replace the regular income tax?
How might we improve the AMT? Q.How might we improve the AMT? A.Congress could retarget the AMT to its original purpose or enact a major overhaul of the income tax system, eliminating the need for an alternative tax. Read more about How might we improve the AMT?
Did the American Taxpayer Relief Act of 2012 fix the AMT? Q.Did the American Taxpayer Relief Act of 2012 fix the AMT? A.The American Taxpayer Relief Act of 2012 (ATRA) prevented an explosion in the number of tax filers ensnared by the AMT. Nonetheless, some 5.2 million will pay the AMT in 2017. Read more about Did the American Taxpayer Relief Act of 2012 fix the AMT?
