CHUQ

Spite is a bad basis for legislation, which is why we find ourselves stuck with the Alternative Minimum Tax.

It was passed in 1969 after Treasury disclosed, to widespread outrage, that 21 millionaires had paid no income tax because of artful - but legal - use of deductions, credits and shelters.

From those 21 taxpayers, the AMT has grown with inflation to capture more and more taxpayers, 3.8 million households in 2006, soaring to 23 million next year - about 25 percent of tax filers - and more than 30 million in 2010.

By 2010, almost everyone making $200,000 to $500,000 will be paying the AMT but so, too, will about half the filers in the $75,000 to $100,000 range.


The Cincinnati Post - Repealing the spite tax


Did you know of a spite tax? whatya think?

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Tumbleweed

The AMT is a problem that has been on the horizon for quite awile.We don't hear much about it until it really starts hitting folks in the wallet.

I refer to it as a "sneak tax".

A lot of people weren't even aware of it.

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CHUQ

A "sneak tax"? Good analogy.

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TRUTH exist, only a falsehood has to be invented.

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Troianii

There is an easy solution: don't overtax the rich. Give a flat income tax with no deductions and alot of problems would be solved. What we had before tax cuts was what you would call "redistribution of wealth", "punishing success/hard work."

a) before the tax cuts, the highest possible income tax when added up together at all levels was 77% for those in the top income bracket (I beleive the state was Cali). That is on top of all of the other taxes.
b) the top 1% richest of the nation, even with the tax cuts and "sneaks" still pay 50% of the nations taxes, and uses next to none when you subtract military and infrastructure.


... I'm still confused on what exactly the spite tax is, I've never heard of it before but what is mentioned around it sounds familiar. Could you clear up what exactly it is for me, please?

Tumbleweed

Alternative Minimum Tax

Alternative Minimum Tax - Wikipedia, the free encyclopedia

__________________
"To argue with a person who has renounced the use of reason is like administering medicine to the dead." Thomas Paine

Military might doesn't make up for political stupidity.

Troianii

Thank you for that.