Alternative Minimum Tax

[FC]

"Ever since the late 1960s, the tax code has included alternative minimum tax provisions theoretically designed to prevent the 'rich' from using loopholes to avoid paying any federal income tax at all... Three things are now pulling middle-class families into the maws of this tax. First, unlike the normal income tax, the AMT was never indexed for inflation. As wages have crept up with prices, workers making relatively less-affluent incomes have crept closer and closer to the threshold that will subject them to the AMT. Secondly—and ironically—the cuts in the income-tax rates secured by President Bush are causing more middle-class families to have lower tax bills under the ordinary tax, thus exposing them to a potential AMT liability that would essentially seize the income that the Bush tax cuts would let them keep. Thirdly, the AMT does not allow deductions for dependent children, state income taxes or property taxes. Under AMT, more children means more federal taxes, and a more valuable house means more federal taxes... Why won't an all-Republican government push to simply abolish the AMT? Because it has already made plans to spend every penny of revenue the AMT will bring in to the federal coffers from its expanded taxation of middle-class families." —Terence Jeffrey

 

 

[fritz]

Not sure about this one, Tony.

 

Just don't enact an across-the-board income tax that excludes deductions.

 

That would, as any fair person could see, tax the income of someone in a business like mine on the gross and not the net.

 

I would love to show everyone my net, and be taxed on it instead of my gross. And that is the way it is now.

 

In simple words, in my business I gross about three times what I net. Whereas someone who is a salaried employee has about the same net as gross.

 

How can you compare the two?

 

I know you didn't mean the flat tax that a lot of salaried workers seem to wish upon someone in my business, but I mentioned it anyway.

 

Seems like as good a time as any.

 

fritz

[karlunity]

Folks,

 

I have been studying history for 50 years and if I have learned on thing, it is that the rich don't pay and never have paid more tax than they had to.

 

There is always a "loophole" and has been since Sargon was a pup .

 

Now the "Middle Class" what the British called yeoman, cannot afford the lawyers and the "political contributions" needed to insure "loopholes" for them and the vast voting poor don't have the loot to pay or won't since they are not legal.

 

So the middle class will pay till there is no middle class..same thing happened in Rome.

 

Down with income tax.

 

Karl

[Eldora]

Check out Congressman Linder's and Neal Boortz's book on the Fair Tax. It just came out in soft cover. You can find it at Amazon.com. I have the hardback copy and it makes a lot of sense. I understand they've added a chapter or two to clarify things even further. It would force these "illegal immigrants" and even foreign tourists to share the burden because everyone would pay taxes when they spend money, not when they earn it. Check it out. I promise it's a good read. We can even have a good discussion here if we want.