With the Democratic majority in Congress considering new spending plans, there is renewed concern in Washington about whether Congress will raise revenues to pay for new spending. Speaker of the House Nancy Pelosi has specifically endorsed increasing taxes on wealthy taxpayers, and other potential tax increases have been mentioned. The House leadership is reportedly discussing raising the Social Security wage cap and repealing some of the Bush tax cuts. Meanwhile, millions of Americans will be sucked into the vortex of the onerous Alternative Minimum Tax (AMT).
Each of these would raise taxes on millions of Americans and harm the economy. Taken together, they would create a triple whammy that would subject millions of Americans to three tax hikes at once.
Given the growing appetite for more spending on Capitol Hill and the recent return to pay-as-you-go (PAYGO) budgeting, Congress will likely consider these tax increases. Members of Congress, the national press, and especially taxpayers should understand just how many people would be affected by such legislation.
”The Alternative Minimum Tax”
The AMT is a pernicious tax that guarantees tax increases for millions more Americans each year. Moreover, it forces taxpayers to calculate their tax liability multiple times. The AMT also prevents some taxpayers from receiving the full value of the Bush tax cuts. Unless Congress enacts another