Kill the AMT
Kill the AMT
July 20, 2011
www.cumber.com
~~~
The Gang of Six has proposed elimination of the Alternative Minimum Tax (AMT). Only in a comprehensive approach, as presently discussed, can such a thing be accomplished.
We have written about this for years. We were instrumental in getting bipartisan bills introduced in the House to repeal it (Thanks to Congressmen Andrews-D & LoBiondo-R, both from New Jersey where the AMT is sucking folks dry.). Their bill never advanced. Why? Because the answer always was: “Where are you going to get the revenue to make up for the loss of the money that comes in from the AMT?”
Now there is a chance. There is momentum building to change things.
The AMT is an alternative system of taxation that is burdensome, discourages investment, and acts as a surreptitious trap. About 4 million people pay it; it started out as a tax on only 200 people, all millionaires. Over the years it has sneaked up on the rest of us.
The present AMT payers are not mostly million dollar incomes. Those folks know how to avoid it. The people who pay it now are mostly in the middle-income group. If you do not believe me, ask your accountant. And while you’re at it, ask him/her how much extra it costs you to have him/her run the tests every year to see if you have to pay it. And ask the other 20 million Americans who are threatened by it, what they have to do to avoid it. Note that all of this expense is additional cost because of the AMT.
And ask those who do not get their deductions for their state income taxes or the real estate taxes on their homes, how much they like this tax. And while you are at it, compute what their real cost of property taxes is when they get no deduction. Then you can figure out why housing languishes in recovery.
Anyway, now is the time for taxpayers and middle-income working folks and small business to weigh in very heavily against the AMT. The telephone for the US Capitol switchboard is 202-221-3224. Ask the operator to connect you to your congressional member. Be patient when you call; it may ring for a while, but they will answer. They just did for me. They are very busy. BTW, I always compliment the switchboard operator for their service to the United States and the polite way they handle such a massive volume of calls.
And, also BTW, while we are getting rid of the AMT, let’s kill the ethanol subsidy, too.
The moment for citizens to take back their country may have arrived.
~~~
David R. Kotok, Chairman and Chief Investment Officer
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July 20th, 2011 at 12:38 pm
“The moment for citizens to take back their country may have arrived.”
The only ones who have taken the country from its citizens are the giant corporations with effective lobbyists
Real American citizens are fair minded, generous, and are willing to pay their fair share of taxes
Reality is that taxes are too low right now. Yes AMT should be changed back to satisfy the initial goal, but must be replaced with higher income taxes for everyone.
July 20th, 2011 at 12:48 pm
I appreciate the nod to ethanol subsidies, but how will we pay for the repeal of the AMT? Are you basically making the argument that tax cuts will automatically pay for themselves? Hasn’t this theory been shown to be suspect?
July 20th, 2011 at 1:33 pm
“but how will we pay for the repeal of the AMT”
By cutting Medicare and Social Security and increasing defense spending.
July 20th, 2011 at 1:59 pm
Let’s eliminate all taxes for the rich and corporations. They are the job creators after all.
July 20th, 2011 at 2:12 pm
I know your being sarcastic TK13, but is there a possibility that we can fire these “job creators”?!?!? There not doing there F-ing job!
At some point, after bending over repeatedly for these “job creators” (bailouts, subsidies, loopholes, etc.), don’t they have to begin CREATING SOME FRICKIN JOBS! It seems odd that we continue to refer to these folks as something that they are most clearly are not.
I hate these sayings that sound good but in reality are meaningless or actually mean the opposite. At the top of my list is “Credit is the lifeblood of the economy” WTH does that mean? Any proof to back that up? That’s like saying sugar is the key to a healthy diet. I could see a case for production being the lifeblood of the economy, or maybe even demand but credit seems like an outgrowth, rather than the lifeblood.
rant off.
July 20th, 2011 at 2:54 pm
Thatguy – business does not owe us laborers a job or a living .. maybe society does .. and government is that society role .. in the centuries past .. society needed laborers & soldiers to keep nature at bay .. nowdays there are plenty bodies for that .. as a matter of fact I think we have gotten to the point that society has used the masses to pump up the volume to .. well it seems time to cut back and save resources .. and I’m doing all I can to call occupants of the world to tell business we’re not cattle
July 20th, 2011 at 2:57 pm
” let’s kill the ethanol subsidy, too.”
Tobacco…cotton…sugar…. ? Why stop at one? And that’s only the little stuff; not even in the league of big financial institutions.
July 20th, 2011 at 4:41 pm
All the whining about how complex the AMT is wrong. If you use software (and one must assume most accountants do) you really need to just enter the amt interest in addition to what you would otherwise enter. The software does the rest and figures out if you need to file the 6251 and pay the amt. It is not a significant effort. If your accountant does things by hand you need a new accountant or just use Turbo Tax or the like. So much of the whining about complexity assumes folks do things by hand, but today with computers being so cheap, software does the work. (this is not a comment on the virtues/vices of the AMT, although right now it does walk and talk like a flat tax)
July 20th, 2011 at 7:57 pm
“Lyle”,
you are The Poster Boy for “‘Software’/'Spell-Check’/'Predictive “Typing”/’Calculators’, et al., etc.” are Making Us Stoopid..
AMT cuts into the ‘Tax-Deductibilty’ of many, and certain, “Municipal Bonds”.
Kotok is a Muni-Bond Pimp..
if He, actually, cared about his Clients’ *Welfare, as opposed to, pre-eminently, his Fees..
He would be writing about the Federal Reserve’s devaluation of the ‘Dollar’, thus forcing, more, and more, of his Clients into “AMT-status”..
but, alas..
~~~
O, and, if, you haven’t, yet, figured it out, “Clerical Work” is not = to “Tax Law/Accountancy” / “Risk Management” ..
but, thanx~, for the Foil..
http://www.thefreedictionary.com/foil (def. 2, #3)