Like a gathering storm, the full force of the AMT is scheduled to intensify with time. Almost every elected official pledges to do something about the AMT, but just not now since any reform would have substantial costs in foregone revenues. In this note we discuss a politically palatable option: addressing each item in the AMT individually and adjusting the regular tax accordingly. Simply put, Congress would decide on the treatment of an item of income or preference once and only once for the regular tax only.
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