* Today’s posting to the ROTH AND COMPANY TAX UPDATES tax blog has some interesting comments on the dreaded Alternative Minimum Tax (AMT):
“But to me, it's really the dishonesty. The AMT has provided cover for deceptive tax policy ever since it was enacted. It works like this: a politician promises a tax benefit. The tax benefit is written so that it doesn't work for AMT.
When the technicians compute the revenue effect of the tax break, they take into account that it won't work for AMT. This makes the tax break much less costly than it would be otherwise.
The politician gets to brag about a brave new loophole, and the taxpayers think he's a great guy, or gal. Then they complain about how that darn AMT got them. It's the ultimate bait-and-switch of tax policy."