The Alternative Minimum Tax: Repeal Not Reform

The alternative minimum tax (AMT) is a federal
income tax imposed on top of the basic income tax. The
two income taxes have different deductions, exemptions,
and tax rates. Unlike the basic income tax, the AMT is not
indexed for inflation, with the result that its burden is
expected to grow rapidly in coming years.

Without relief from Congress, 23 million taxpayers
will pay the AMT in 2007. The average liability will be
more than $3,000, and that added burden will hit most
families by surprise. To avert a tax revolt, lawmakers
would be wise to take action and repeal this unneeded tax.