The Alternative Minimum Tax (AMT) is expected to hit 23
million taxpayers when they file their returns at this time next year, for the
tax year 2007
Bill Clinton’s tax increase of 1993 is the culprit for
millions of taxpayers.
When President Clinton and the Democratic Congress raised
the rates on the AMT, in 1993, they also failed to index for inflation. Only
300,000 tax payers, paid the AMT then.
If we were to go back to the rates prior to the tax
increase, only 2.6 million taxpayers would be subject to the tax, next year,
according to the Joint Tax Committee, (JTC).
Most of those 2.6 million are in the top 2%. Among the other
20 million plus, most are in the broad middle class, some well down the ladder
in the middle class.
Beware of Democratic Spin
Since the Bush tax cuts, middle class families have saved an
average of $2000 a year, despite the never ending Democrat falsehood of tax
cuts for the rich.
However, because the 1993 tax increase failed to index for
inflation, the AMT will now put the bite on millions of taxpayers for whom it
was never intended.
The spin by Democrats, attempts to portray the Bush tax
cuts, including the millions saved by the middle class, as having something to
do with why more taxpayers will be paying the AMT.
If congress takes no action, those who become subject to the
AMT for the first time, will still pay a lower tax because of the Bush tax
cuts, after the addition of the AMT.
When Democrat spin
starts, which it surely will, don’t be deceived.
Recall, that right up until his election, Bill Clinton
promised a middle class tax cut.
Immediately upon taking office, he fulfilled that promise by
raising gas taxes, income tax rates, Medicare payroll taxes, and taxes on many
social security recipients.
If the Democratic congress would roll back the AMT rates to
the pre-Clinton years, and index those rates, about 20 million taxpayers,
mostly middle class would escape a tax that was never intended for their level
of purchasing power.
The original AMT was instituted due to Democrat hysteria in
1969 upon learning that 21 millionaires had paid no tax.
We’ve heard reference many times to the law of unintended
consequences. Most of these laws come from feel good Democrat proposals
that postulate about victims and inequality.
Democrats made many promises to the middle class in 2006,
let’s see if actions speak louder than words.
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