Alternative Minimum Tax
The Individual Alternative Minimum Tax (AMT) operates parallel to the regular income tax, with different rates and definition of income and deductions. Although the AMT has historically applied to few taxpayers, the tax will grow rapidly over the next decade under current law as the income levels to qualify were not indexed for inflation. In 2010, the AMT affected approximately 33 million taxpayers – about one-third of all tax returns, up from 1 million in 1999. In 2010, Congress approved a “patch” for the AMT. The patch increased the AMT exemption, which is basically a standard deduction for taxpayers hit by the alternative minimum tax. The masonry industry supports repeal of the AMT or appropriate indexing of the AMT to its original date of enactment or the date of enactment of the new AMT bill.
The AMT was “patched” in 2007, 2008, and 2010. Due to the amount of tax revenue generated from the AMT tax, it will be very difficult to ever completely repeal the AMT. It is extremely difficult to find another source of this much revenue or enough reduction in spending.
While the 2010 omnibus tax package patched the AMT through 2012, it will have to be addressed before 2013.
The masonry industry supports repeal of the AMT or appropriate indexing of the AMT to its original date of enactment or the date of enactment of a new AMT bill.