I get taxed soooo much. I was getting a couple of thousand back each year. Suddenly I owe thousands...
I pay my taxes, I do my work,I pay over $6,000 property taxes each year. why, why, why?
How do the rich people get around it?
2007-02-02 06:26:04 · 5 answers · asked by themissionhq 1 in Business & Finance ➔ Taxes ➔ United States
The tax was designed to get rich people who were finding ways to avoid taxes. However, the designers of that piece of work did not take inflation into consideration. Now, decades later, the amount they hard coded into the legislation is an absurdly low amount compared to what incomes are in the US. It will get worse every year.
The lawmakers know that it is a problem. They know it is wrong. So far, they have not done much to change it. Why? Because they are afraid of raising taxes in other areas to offset the money that would be lost if this tax was modified or done away with.
The current system is far too complex. It needs to be simplified and rotten laws like this one thrown out. The government needs to spend a lot less than what they spend. There are all sorts of ways this can be done.
2007-02-02 06:33:44 · answer #1 · answered by A.Mercer 7 · 0⤊ 0⤋
They don't, that is the point of AMT. If you make over a certain amount, determined by some convoluted formula, they start taking away your deductions until you are below the amount given by another convoluted formula. The whole point of the AMT is to ensure rich people pay taxes. The bad part is the AMT threshold hasn't been raised in years, so now it affects many middle class families.
2007-02-02 06:29:44 · answer #2 · answered by rosekm 3 · 2⤊ 0⤋
What has changed for you in the last year? Has your income increased considerably? Have you gotten married or divorced? Did you have a dependent in prior years that you no longer claim? Did you buy or sell your personal residence? There are so many factors involved in determining why your tax refund/liability has changed.
2007-02-02 06:29:31 · answer #3 · answered by Rene F 2 · 0⤊ 0⤋
This is a tax where they add back in and disallow some of your deduction. More and more people are getting hit with AMT. It used to be just the higher income people. Now it hits the middle class.
Rich people don't get around it. They just get hit harder!
2007-02-02 06:29:10 · answer #4 · answered by Dizney 5 · 0⤊ 0⤋
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2007-02-03 02:31:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋