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?
Why are taxes so complicated? Q.Why are taxes so complicated? A.Our tax system could be simple if its only purpose were to raise revenue. But it has other goals, including fairness, efficiency, and enforceability. And Congress has used the tax system to influence social policy as well as to deliver benefits for specific groups and industries. Read more about Why are taxes so complicated?
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?
