Democrats Plan Alternative Minimum Tax Break
Posted Apr 09, 2007 01:19 pm CDT
House Democrats plan to draft legislation to exempt more taxpayers from the alternative minimum tax.
Anyone making less than about $200,000 a year would not be subject to the tax, the New York Times reports.
The tax was created in 1969 to prevent millionaires from using deductions to escape federal income taxes. Because it has not been adjusted for inflation, it is snaring more taxpayers, affecting some people with annual incomes as low as $50,000.
The change would cost the federal government about $1 trillion over the next decade.
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