April 15, 2005

AMT Snaring More Taxpayers

Avrum Lank takes a look at the AMT - extensively discussed here:
"It's just another example of smoke and mirrors," said Paul S. Wickert, owner of Acc-U-Rite Tax & Financial Services Inc., a tax preparation firm on Milwaukee's south side. "They show you a 20 percent rate with one hand while their other hand is in your back pocket" grabbing more. The AMT tax rate varies from 26% to 28% of earned income, while regular tax brackets go from 10% to 35%.

The impact is especially great for large, middle-class families in states with high income and property taxes, such as Wisconsin. The AMT disallows deductions for local taxes, and does not take into account all of the personal exemptions allowed under the regular tax law.
Posted by James Zellmer at April 15, 2005 7:32 AM | Subscribe to this site via RSS:
Posted to Taxes