Will there be an AMT fix?

Am I insane for talking about the Alternative Minimum Tax when there is so much debate about extending the Bush tax cuts? Well, the tax cut drama will probably play itself out this year or next and I believe President Obama will get something in return for extending the tax cuts whether it occurs this year or next.

So let’s talk about the AMT and what it represents. When tax planning is done it is done with the AMT in mind. Actually it can be argued that tax planning is alternative minimum tax planning, and yet most taxpayers don’t even know what it is. I reviewed a small business owner’s tax return this year and he was completely unaware that he had been paying AMT.

The AMT is really quite a brutal tax to get hit with. But why is there an AMT drama every year, year after year? If there wasn’t such a strong debate about extending the Bush tax cuts, the drama over the AMT fix would be in the headlines. So, I am waging a one man crusade to bring the AMT back into the tax limelight.

Perhaps more pertinent questions are, Why does Washington have to have an AMT debate every year? Why must there be a tax that needs to be fixed year after year? Have we not elected smart enough lawmakers to fix the AMT permanently?

A permanent AMT fix is really not very hard to draft. Every tax bracket out there is indexed to inflation. Is there a reason why the AMT can not be indexed to inflation?

This would be a great question to ask any candidate running for Congress or the Senate, “How do you permanently fix the AMT?” If that candidate is not smart enough to know how to fix the AMT permanently should that person really be holding public office?

Someone please stop the insanity. While I am on the topic of insanity, I would like to bring up one more item that disturbs me twice a year for about a week or so, and that is the switching from daylight savings time to standard time. Just move the clock a half hour and leave it alone!

About this Author 

John Beidle is an enrolled agent who specializes in helping entrepreneurs, small business owners and real estate investors pay the least amount of tax as legally possible.

About The Author

John Beidle

John Beidle is an enrolled agent who specializes in helping entrepreneurs, small business owners and real estate investors pay the least amount of tax as legally possible.

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