THUMBS DOWN: No AMT Relief Spotted

Physician's Money Digest, July15 2003, Volume 10, Issue 13

Despite the Washington, DC,action on taxes, the AlternativeMinimum Tax (AMT) emerged virtuallyuntouched. The tax, originallyaimed at the very rich who used avariety of deductions to shrink theirtax bill, will affect 2.7 million US taxpayersthis year. Because tax bracketsunder the AMT aren't adjusted forinflation, even more taxpayers willrun afoul of the law in the future.Unless Congress acts to provide reliefnext year, the AMT will affect an estimated17 million Americans in 2006and 31 million in 2010, includingmany in the middle class, who werenever the intended targets of the law.Most likely to fall victim to the AMTare those who have many deductions,such as taxpayers who have severalchildren or who live in high-tax areaslike New York City.