Research Report The Individual Alternative Minimum Tax: Historical Data and Projections, Updated October 2009
Katherine Lim, Jeffrey Rohaly
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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 Areas Taxes and budgets
Tags Individual taxes
Policy Centers Urban-Brookings Tax Policy Center