The Individual Alternative Minimum Tax: Historical Data and Projections, Updated October 2009

Research Report

The Individual Alternative Minimum Tax: Historical Data and Projections, Updated October 2009

October 5, 2009

Abstract

The alternative minimum tax (AMT), which originally targeted high-income taxpayers, requires annual legislation to prevent it from affecting millions of middle-income individuals each year. There are two primary reasons for the AMTs broadening impact; its parameters are not indexed for inflation and the 2001-2006 tax cuts reduced regular tax liability without changing AMT liability. In 2009, four million taxpayers will pay $33.5 billion in AMT, but without congressional action that number will rise to 27 million owing $102 billion in 2010. This paper describes the AMT and provides TPCs latest estimates of AMT coverage, revenue, and distribution.

Research Area: 
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.