Eliminating AMT Hurts, Not Helps The Middle Class
To the Reader’s Forum:
Topic Number 556 in the IRS code explains the purpose of the Alternative Minimum Tax:
Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high economic income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax.
In layman’s terms it tries to bring fairness to the tax code by not allowing the very rich to hire accounts to comb through the 50,000 pages of the tax code and finagle their returns to pay little or no taxes. It tries to fix a rigged system. Think of it as the equivalent of a tax return on a postcard for the very wealthy.
The republican proposal eliminates the Alternative Minimum Tax. If this is a middle class tax proposal, as Mr. Reed claims, then why is the AMT eliminated? It is not fair, it does not reduce the huge tax code and in fact enhances it, and it hurts, not helps the middle class. Tell Mr. Reed to vote against this ‘gift to the wealthy’ tax proposal.