The Alternative Minimum Tax must be repealed. This unfair tax was originally designed to ensure the wealthiest Americans paid their fair share of taxes. Now, increasing numbers of middle-class taxpayers are socked with hefty bills each April.
NFIB believes the Alternative Minimum Tax (AMT) should be repealed. The AMT is a remarkably complex provision in the tax code. It requires taxpayers to calculate their taxes twice and then pay the larger amount. The AMT was originally designed to ensure that wealthy Americans pay a reasonable level of their income in taxes. However, Americans in the middle class, including many small business owners, are now subject to the tax because of the combined effects of inflation and the reductions in the regular income tax. Because many small businesses continue to grapple with the AMT’s complexity, NFIB continues to fight for its full repeal.
On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 (ATRA), which provided for permanent AMT relief. Specifically, the ARTA increased the exemption amounts for the AMT for 2012 to $50,600 for individuals and $78,750 married couples filing jointly, and indexes the exemption amount.
NFIB will continue to advocate for the full repeal of the AMT.
Click here to determine whether or not you are subject to the AMT with this quick-to-use AMT Assistant worksheet from the Internal Revenue Service.