Tuesday, January 29, 2013

The AMT Fix Was A "Stunning Development"


From the Fairmark.com Tax Guide for Investors, here:

"Although the AMT [Alternative Minimum Tax] fix merely preserves the status quo, for those who follow tax legislation and budget politics this is a stunning development. The need for this measure has been apparent to everyone for many years, but Congress has been unable to deal with the budget implications of a permanent fix and instead has enacted an AMT patch every year or two. How big is the budget impact of a permanent fix? Over the next ten years, this single provision in ATRA [American Taxpayer Relief Act] is estimated to cost the federal treasury over $1.8 trillion dollars. Not a typo."