My numbers may be off a little, but I read somewhere that Trump's tax on the one return that was released was about $5.4 million without AMT and because of AMT he owed something like $35 million. Those are the types of numbers that demonstrate the value and purpose of AMT. I believe regardless of what the brackets are and the deductions there should be an AMT of some design in place to make sure those making more than $250,000 pay taxes to their bracket level.

What is the basis for your statement "The real rich get hardly touched ..."? Do you have any facts that show the AMT does not impact them?

 

Quote in post #57 from Tax Policy Center says the same thing. The wealthiest aren't the ones paying the AMT, it more often hits small/family businesses.

My numbers may be off a little, but I read somewhere that Trump's tax on the one return that was released was about $5.4 million without AMT and because of AMT he owed something like $35 million. Those are the types of numbers that demonstrate the value and purpose of AMT. I believe regardless of what the brackets are and the deductions there should be an AMT of some design in place to make sure those making more than $250,000 pay taxes to their bracket level.

 

The AMT makes up less than 1% of the taxes collected. The AMT is just a talking point used my one political party to get their base all worked up when it is actually much to do about nothing.

My numbers may be off a little, but I read somewhere that Trump's tax on the one return that was released was about $5.4 million without AMT and because of AMT he owed something like $35 million. Those are the types of numbers that demonstrate the value and purpose of AMT. I believe regardless of what the brackets are and the deductions there should be an AMT of some design in place to make sure those making more than $250,000 pay taxes to their bracket level.

But if they do away with pretty much every deduction you don't need it.

But if they do away with pretty much every deduction you don't need it.

 

Then no problem having it there ... just in case.

 

The AMT has been in place since the 1970's. Tweak it. Find out where it is most effective. If it is harming one group more than it should, make the changes necessary. Don't eliminate it.

I forgot to attach the link I referenced in post #60 I just noticed....oops. I will try to find it again.

Then no problem having it there ... just in case.

 

The AMT has been in place since the 1970's. Tweak it. Find out where it is most effective. If it is harming one group more than it should, make the changes necessary. Don't eliminate it.

 

Just in case? Are you afraid some family farm may not pay enough taxes next year?

Why are you so against eliminating it? It has been demonstrated that the super rich don't really pay it, family businesses and working professionals pay the majority of it and at the end of the day it is less than 1% of collections. Nearly all deductions are being eliminated that allow some to avoid it...yet you still want it. Why? Other than being a major talking point used to divide people in our country, what other reason is there for keeping the AMT?

I guess the elimination of the Estate Tax "Death Tax" is troubling for others as well? Why?

 

I've never understood why the rationale of the estate tax. I work my entire life, start a small business, pay all of my taxes and make it successful...then I die and the rest of America thinks they now deserve part of the inheritance?

 

Or I hit the Powerball with a $200,000,000 cash option after taxes I'm left with around $110,000,000...then I die suddenly and my family automatically owes another $45,000,000 in taxes? I paid $90M in taxes then because I died my family owes another $45M in Taxes.

Just in case? Are you afraid some family farm may not pay enough taxes next year?

Why are you so against eliminating it? It has been demonstrated that the super rich don't really pay it, family businesses and working professionals pay the majority of it and at the end of the day it is less than 1% of collections. Nearly all deductions are being eliminated that allow some to avoid it...yet you still want it. Why? Other than being a major talking point used to divide people in our country, what other reason is there for keeping the AMT?

 

Why do you feel so strongly that it should be eliminated?

 

My biggest concern is that someone like Trump or some other person who makes castles full of money finds a loophole of some sort and avoids paying taxes. I want the AMT there to make sure no loopholes work.

 

I guess the elimination of the Estate Tax "Death Tax" is troubling for others as well? Why?

 

I've never understood why the rationale of the estate tax. I work my entire life, start a small business, pay all of my taxes and make it successful...then I die and the rest of America thinks they now deserve part of the inheritance?

 

Or I hit the Powerball with a $200,000,000 cash option after taxes I'm left with around $110,000,000...then I die suddenly and my family automatically owes another $45,000,000 in taxes? I paid $90M in taxes then because I died my family owes another $45M in Taxes.

 

I agree with you on the estate tax. It is double taxation on earned assets. Eliminating this is much more impactful to small businesses and family farms than the AMT.

Why do you feel so strongly that it should be eliminated?

 

My biggest concern is that someone like Trump or some other person who makes castles full of money finds a loophole of some sort and avoids paying taxes. I want the AMT there to make sure no loopholes work.

I'd agree if they were doing something illegal to avoid paying taxes. I don't agree with penalizing anyone that follows the law, just because we don't like it. I'd prefer eliminating the deductions (as offered in the current plan) and letting the chips fall where they may.

Why do you feel so strongly that it should be eliminated?

 

My biggest concern is that someone like Trump or some other person who makes castles full of money finds a loophole of some sort and avoids paying taxes. I want the AMT there to make sure no loopholes work.

 

 

 

I agree with you on the estate tax. It is double taxation on earned assets. Eliminating this is much more impactful to small businesses and family farms than the AMT.

 

50% of Americans dont even pay any taxes, and you want to keep taking from the 50% who do?

Feels like a lot of trickle down voodoo economics that means cuts but no boost in jobs or the economy.

I'd agree if they were doing something illegal to avoid paying taxes. I don't agree with penalizing anyone that follows the law, just because we don't like it. I'd prefer eliminating the deductions (as offered in the current plan) and letting the chips fall where they may.

 

I am good with everything you are except I don't want the highest income earners avoiding tax. Draw the line somewhere between $250,000-500,000 for the AMT. Everyone above that line pays a flat tax or AMT, however you want to characterize it.

 

If I am interpreting the numbers right, those people are going to have a huge tax windfall in Trump's plan. Their tax cut is going to be 50-70%. An AMT will try to keep some of that from being completely out of line with the decrease the middle class gets.

I am good with everything you are except I don't want the highest income earners avoiding tax. Draw the line somewhere between $250,000-500,000 for the AMT. Everyone above that line pays a flat tax or AMT, however you want to characterize it.

 

If I am interpreting the numbers right, those people are going to have a huge tax windfall in Trump's plan. Their tax cut is going to be 50-70%. An AMT will try to keep some of that from being completely out of line with the decrease the middle class gets.

How would you envision anyone making that much money under this plan being able to get out of paying tax?

 

You make $1,000,000. You get the first $24,000 free. You can deduct your mortgage interest, your charitable donations, and you retirement savings. Unless your are putting all of your money into an IRA or giving it all to charity, you are paying plenty of tax. I just don't see anyone getting a windfall and I sure don't see 50-70% savings.

Trump's tax bracket is going to go from near 40% to 15% under the plan I saw. That is about a 60% reduction in his taxes.