Explaining the AMT spike
By Arnold Kling
Joe Kristan has the story.
Congress has fought the arithmetic with “temporary” increases in the AMT exemption. The 2006 exemption is set at $62,550 for joint filers and $42,500 for single taxpayers. Without further legislation, the exemption reverts in 2007 to its “permanent” level of $45,000 for joint filers and $33,750 for single filers. That will be enough to make millions of Americans pay AMT. Hence the jump in the chart above.
So we have a large stealth tax increase scheduled. And still, deficits as far as the eye can see.