2007-02-09 12:46:10 · 4 answers · asked by Kitty 1 in Business & Finance ➔ Taxes ➔ United States
It's been around since 1969. It was only intended to apply to 155 "high income earners"; at the time.
Wealthy people/or their financial planners know all the tax loop holes. Wealthy people tend to always use them.
However, these loop holes are available to the average Joes too. It's just that financial advisors don't have the average joes as clients.
2007-02-09 13:06:40 · answer #1 · answered by jamferris 2 · 1⤊ 0⤋
It's not new, it's been around quite awhile, but as inflation increases incomes, is hitting more and more people. Its original intent was to keep very high-income people from escaping paying taxes through having a lot of deductions. Now it's hitting some upper middle income people, especially those in states with high taxes and high cost of living. It needs to be re-indexed so it's just hitting high income people again.
2007-02-09 20:50:52 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
It has been around for about 30 years.
It is to make sure that the Clinton's, Rockefeller's, Kennedy's of the USA PAY SOMETHING in taxes just like the majority of poor Americans.
2007-02-09 21:02:54 · answer #3 · answered by Hammerhead 2 · 0⤊ 0⤋
The AMT is not new. It might be new to you if you just came into a lot of money. It only applies to the very rich as they normally manage to avoid paying any taxes at all by keeping their money in off shore accounts.
Your welcome.
2007-02-09 20:51:55 · answer #4 · answered by Akbar B 6 · 0⤊ 1⤋