The individual AMT

Problems and potential solutions

Leonard Burman, William G. Gale, Jeffrey Rohaly, Benjamin H. Harris

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Originally targeted at high-income households, the individual alternative minimum tax (AMT) is now on the verge of switching from a "class" tax to a "mass" tax. Under current law, the AMT will encroach dramatically on the middle-class over the next decade and will become the de facto tax system for upper-income households. These changes occur because of the non-indexation of the AMT for inflation and the tax cuts enacted in 2001. The trends are troubling because the AMT is notoriously complex, its effects on efficiency and equity are questionable, and the underlying purpose of the AMT is controversial. This paper provides information on the AMT, its economic effects, and options for policy reform, and is intended to help inform the debate and the eventual reforms that will be required in the near future.

Original languageEnglish (US)
Pages (from-to)555-594
Number of pages40
JournalNational Tax Journal
Volume55
Issue number3
StatePublished - Sep 2002
Externally publishedYes

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Tax
Household income
Policy reform
Tax system
Equity
Middle class
Inflation
Economic effect
Tax cuts

ASJC Scopus subject areas

  • Accounting
  • Economics and Econometrics
  • Finance

Cite this

Burman, L., Gale, W. G., Rohaly, J., & Harris, B. H. (2002). The individual AMT: Problems and potential solutions. National Tax Journal, 55(3), 555-594.

The individual AMT : Problems and potential solutions. / Burman, Leonard; Gale, William G.; Rohaly, Jeffrey; Harris, Benjamin H.

In: National Tax Journal, Vol. 55, No. 3, 09.2002, p. 555-594.

Research output: Contribution to journalArticle

Burman, L, Gale, WG, Rohaly, J & Harris, BH 2002, 'The individual AMT: Problems and potential solutions', National Tax Journal, vol. 55, no. 3, pp. 555-594.
Burman L, Gale WG, Rohaly J, Harris BH. The individual AMT: Problems and potential solutions. National Tax Journal. 2002 Sep;55(3):555-594.
Burman, Leonard ; Gale, William G. ; Rohaly, Jeffrey ; Harris, Benjamin H. / The individual AMT : Problems and potential solutions. In: National Tax Journal. 2002 ; Vol. 55, No. 3. pp. 555-594.
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