Publication Date: March 2008
Publisher: Tax Policy Center
Author(s): Benjamin H. Harris; Christopher Geissler
Research Area: Banking and finance
Keywords: Tax Policy; Tax Distribution and Economic Trends; Taxation of Households; Individual Alternative Minimum Tax
Recent tax acts sharply lowered tax rates on long-term capital gains and dividend income. For millions of taxpayers, however, the alternative minimum tax limits the benefits from these cuts by increasing the effective marginal tax rates on capital gains and dividend income. The culprit is the phaseout of the AMT exemption.