Why the Middle Class Pays the Alternative Minimum Tax

The AMT is supposed to affect the wealthiest Americans, not moderate-income taxpayers.

In 1987, one year after the last major overhaul of the alternative minimum tax system, only one tenth of one percent of all returns had to pay the alternative minimum tax.

Today, the alternative minimum tax is no longer just for high-income individuals. Now, many middle-income Americans are paying the alternative minimum tax or having their tax credits limited by its hidden effects.

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IncomePercentage Who Pay AMT
Row 1 - Cell 0 200020052010
$75,000 - $100,0002.3%14.7%29.3%
$100,000 - $200,0005.7%16.1%35.6%
$200,000 - $500,00018.8%34.0%64.0%

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