Senior Fellow Eugene Steuerle examines tax reform and the Alternative Minimum Tax (AMT). He suggests a solution: Simply eliminate or cut the AMT and then replace it with more direct taxes on the income classes that benefit from the AMT tax cut. He concludes, however, that neither political party, it seems, is ready for a more sweeping type of reform. The net result is that both parties are put in the position of favoring stealth taxes over explicit taxes. Meanwhile, the AMT remains and grows in size every year.
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