Who pays the AMT? Q.Who pays the AMT? A.The individual alternative minimum tax (AMT) primarily affects well-off households, but not those with the very highest incomes. It is also more likely to hit taxpayers with large families, those who are married, and those who live in high-tax states. Read more about Who pays the AMT?
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?
