Publication Date: March 2007
Publisher: Tax Policy Center
Author(s): Greg Leiserson; Jeff Rohaly
Research Area: Banking and finance
Keywords: Tax Policy; Taxes, the Budget, and the Economy; 2001 Tax Cut; Taxation of Households
Under current law, the number of taxpayers affected by the alternative minimum tax (AMT) is projected to rise from about 4 million in 2006 to more than 23 million in 2007 and more than 32 million in 2010. On average, taxpayers affected by the AMT in 2010 will owe an additional $3,600 in taxes. Two primary culprits are responsible for this impending explosion: the failure to index the AMT for inflation and the 2001?2006 tax cuts. This article illustrates the growth of the AMT that would have taken place if the different incarnations of the tax that have existed since 1990 were in place today and explains the reasons for the changes in the projections under each scenario.
Learn how to upload your organization's valuable work into PolicyArchive and share your works with researchers and policymakers around the world.