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The AMT and the Bush Tax Cuts

Gabriel Aitsebaomo (Thurgood Marshall) has published The Individual Alternative Minimum Tax and the Intersection of the Bush Tax Cuts: A Proposal for Permanent Reform, 23 Akron Tax J. 109 (2008).  Here is the Conclusion:

This article reveals that the AMT has lost its purpose. The principal reasons why the AMT has been infiltrating more and more into the returns of unintended middle and upper class taxpayers are the Bush tax cuts and the fact that the AMT parameters are not indexed for inflation. Rather than seek a permanent solution to the problem, Congress has opted instead, to use yearly temporary AMT exemption *142 amount increases to mitigate the increasing number of taxpayers subject to the AMT. To align the AMT with its original purpose and policy objective, Congress should exempt from the AMT altogether, taxpayers with AGI of $250,000 or less. This exemption approach would not only permanently eliminate middle and upper middle class taxpayers from the AMT but would also spare them from the burden and complexities of having to calculate the AMT in the first place.


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