AMT and MIIT

In 1969 when Secretary of the Treasury Joseph Barr testified before Congress that 155 individuals had incomes above $200,000 but owed no income tax. The resulting uproar led Congress to enact the so-called "add-on" minimum tax, a precursor to today's Alternative Minimum Tax (AMT).

From Politco 8/5/11  
And, the [IRS] data show, the 235,413 taxpayers who reported earning seven digits or more in 2009 took in a total of $726.9 billion — yet 1,470 paid not a penny of income taxes. In 2007, 959 Americans earning $1 million or more paid no income taxes. Read more: http://www.politico.com/news/stories/0811/60717.html#ixzz2CnObjdZs

Are you as outraged as they were in 1969!

It is probable that the names of the 155 households in 1969 are still the same as those 1,470 in 2009 - 40 years later.  Yet AMT has found its mark on over four million new household names ( In 2012, 45% of all tax filers with cash income between $75K and $100K will be affected by AMT  see article "Who Pays AMT") and will increase to 28 million if the Bush tax cuts expire.

My guess is the Republicans and the Democrats will compromise soon and enact some 2013 "add-on" minimum tax on millionaires - call it the MIIT (Millionaire Incremental Income Tax). And 40 years from now, you (or your children) can also pay this tax.

Maybe the Government should call it by its real name - More Invisible Inflationary Tax!

I'm so glad the popular vote is to tax the rich and not me! Wake up Rip Van Winkle!

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P.S.  The Math ------Let's say today a young couple in their 20's makes $250K together (just below the 2008 definition of wealthy).  With  a modest inflation rate of 3% per year, when they turn 67 that same $250K will be  $1 million to keep up. We know they will still be working at 67 (to save Social Security); consequently they will have entered the "Government definition of  wealthy people" who can afford to "pay alittle more".