Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

THE ECONOMIST SEES AMT AS ROUTE TO TAX REFORM

December 06, 2004

The TaxProf Blog notes an article in The Economist that suggests using the Alternative Minimum Tax as a backdoor to tax reform:

   From the perspective of tax reform, however, the AMT is less an 
   expensive problem than an opportunity. Why not use the AMT 
   as the vehicle for tax reform? By 2009, it will be less costly to 
   ditch the income tax and keep the AMT than to repeal the AMT 
   and carry on with the income tax. The AMT is far from perfect
  —its personal exemption is not indexed; quirks in its structure  
   can mean high marginal rates for some taxpayers; and it 
   allows some needless deductions—but it is less riddled with 
   loopholes than the current income tax. Thus it is a good 
   starting-place for base-broadening, exemption-ending reform.

Does The Economist read the Tax Update?

 • AMT       Bookmark: del.icio.us • Digg • reddit