March 22, 2006 12:58 PM | | Bookmark and Share

On January 1, 2006, temporary higher exemptions from the individual Alternative Minimum Tax were allowed to expire. These higher AMT exemptions were enacted to keep the Bush reductions in the regular income tax rates from pushing large numbers of people into the AMT. But continuation of these higher AMT exemptions is very costly, and our political leaders are adamantly unwilling to find a way to cover that cost (other than with more debt).

If Congress and the Bush Administration do not act to extend the temporary AMT tax breaks, the number of American taxpayers paying the AMT will jump by over 15 million in 2006. This analysis projects the number of 2006 AMT taxpayers in each state under current law (that is, with the same lower exemptions that were in force before 2003) and under the current House and Senate plans to extend AMT relief.

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