Consumerism Commentary - Latest Comments in Repealing the Alternative Minimum Tax (AMT)

Re: Repealing the Alternative Minimum Tax (AMT)

Dus10 — Tue, 09 Jan 2007 08:54:21 -0000

Tom and Stingy,

Sales tax is inherently flat, but the Fair Tax is different. There is a "prebate" for the taxes that you pay on the basic costs of living. Essentially, EVERY tax payer will get a prebate for the amount of taxes that they will pay in the next month. This would be determined based on the cost of living in areas. From what I understand, it may be down to the zip code. Anyhow, this makes it progressive, because up to a certain limit there be absolutely zero federal taxes (and this includes FICA, etc). That is a better deal for the poor than all of the breaks we currently have.

Re: Repealing the Alternative Minimum Tax (AMT)

Stingy Student — Mon, 08 Jan 2007 19:35:31 -0000

I agree with Tom. How can this be progressive? Sure, there's a rebate up to the poverty level, but then, as you reach the low/middle class, it becomes a regressive tax since these people must spend a larger proportion of their income. I think the group of people just above the poverty line are the ones getting screwed over already because they don't qualify for federal programs like Medicaid but probably can't afford an insurance policy because of the increasing costs.

Re: Repealing the Alternative Minimum Tax (AMT)

Tom — Mon, 08 Jan 2007 18:40:35 -0000

Gotta agree with Green, no chance of this happening. If the problem really is just that it hasnt been adjusted, why not just index it?

As for the "Fair Tax", no sales tax can be progressive in my opinion. Sales tax will always hit the poor the hardest. I support a progressive income tax (higher percentages paid the more you make which isnt done in many states) and an elimination of all sales taxes.

Re: Repealing the Alternative Minimum Tax (AMT)

F. D. Bryant III — Mon, 08 Jan 2007 13:40:16 -0000

I have a better idea - repeal the entire tax code and pass the Fair Tax (http://www.fairtax.org). It's revenue neutral, progressive, and relieves the poor of any tax burden.

Re: Repealing the Alternative Minimum Tax (AMT)

Getting Green — Mon, 08 Jan 2007 11:10:48 -0000

I highly doubt it'll pass, the democratic congress will squak that this is just a bunch of rich people trying to get out of paying taxes.