For the nouveau riche denizens of CG

[TripletDaddy]

Or the struggling masses who are just interested in finances....

Anyone following the developments on the Hill re: the repeal of the AMT?

House Ways and Means CC Charles Rengel has introduced a major tax reform initiative that would include a modification of the current individual AMT regime (as well as a lowering of the corporate tax rate, amongst other things).

Basically, he is proposing the repeal of individual AMT for 2008 and subsequent years, with the cost offset by a surcharge on high-income taxpayers--aka, BYU grads...heh heh. The breakdown would be as follows: for married couples, this surcharge would be 4 percent of adjusted gross income (AGI) over $200,000 and 4.6 percent of AGI over $500,000. Note that the surcharge would apply to AGI, which includes capital gain and dividend income. This means that the effective capital gains rates for higher-income individuals would be 19 and 19.6 percent! Ouch.

To help offset this increase in cap gains tax, Rengel is proposing that aspects of prior law that phased out personal exemptions and reduced itemized deductions of high-income taxpayers would be reinstated.

Also, the bill would provide additional individual tax relief by permanently increasing the standard deduction and adjusting it for inflation, increasing the earned income credit tax for individuals without qualifying children, and increasing the refundable child credit.

Unfortunately, Rangel has recently acknowledged that permanent AMT repeal and significant corporate tax reforms will not be taken up this year.

Here is one thing I wish someone up on the Hill would do......eliminate the income phase out for people who are trying to deduct interest paid on student loans. I have never understood this...the government tries to incent you to get more education, then phases out your ability to deduct if you make more than about $60K a year.

[Detroitdad]

Originally Posted by TripletDaddy

Or the struggling masses who are just interested in finances....

Anyone following the developments on the Hill re: the repeal of the AMT?

House Ways and Means CC Charles Rengel has introduced a major tax reform initiative that would include a modification of the current individual AMT regime (as well as a lowering of the corporate tax rate, amongst other things).

Basically, he is proposing the repeal of individual AMT for 2008 and subsequent years, with the cost offset by a surcharge on high-income taxpayers--aka, BYU grads...heh heh. The breakdown would be as follows: for married couples, this surcharge would be 4 percent of adjusted gross income (AGI) over $200,000 and 4.6 percent of AGI over $500,000. Note that the surcharge would apply to AGI, which includes capital gain and dividend income. This means that the effective capital gains rates for higher-income individuals would be 19 and 19.6 percent! Ouch.

To help offset this increase in cap gains tax, Rengel is proposing that aspects of prior law that phased out personal exemptions and reduced itemized deductions of high-income taxpayers would be reinstated.

Also, the bill would provide additional individual tax relief by permanently increasing the standard deduction and adjusting it for inflation, increasing the earned income credit tax for individuals without qualifying children, and increasing the refundable child credit.

Unfortunately, Rangel has recently acknowledged that permanent AMT repeal and significant corporate tax reforms will not be taken up this year.

Here is one thing I wish someone up on the Hill would do......eliminate the income phase out for people who are trying to deduct interest paid on student loans. I have never understood this...the government tries to incent you to get more education, then phases out your ability to deduct if you make more than about $60K a year.

Interesting developments. It sounds like a good balance to try and offset the AMT, but, of course reasonable proposals rarely get anything done. Clearly something must eventually be done to fix AMT.

I agree with you about student loans. Although it is a problem that I wish I had...making too much money (I've got plenty of loans).

[il Padrino Ute]

So, this is Chuck's trillion dollar tax increase, eh? Another reason to not vote for Mrs. Clinton.

I'm not sure who it was, but someone here asked why people on this site thought the Dems would raise taxes if/when they gained control of the House.

[Archaea]

I hate these guys. I'm going to get f...ed, and I won't enjoy it one bit.

May you f...ers all rot in hell.

You Senators pay my f..ing tax bill, assholes. Why earn a living gddm it. I should just stop at 2 and coast the rest of the year. I hate them.

Viva la revolucion!

[TripletDaddy]

Originally Posted by Archaea

I hate these guys. I'm going to get f...ed, and I won't enjoy it one bit.

May you f...ers all rot in hell.

You Senators pay my f..ing tax bill, assholes. Why earn a living gddm it. I should just stop at 2 and coast the rest of the year. I hate them.

Viva la revolucion!

Wow. I can tell you feel very strongly about this issue.

[TripletDaddy]

Originally Posted by il Padrino Ute

So, this is Chuck's trillion dollar tax increase, eh? Another reason to not vote for Mrs. Clinton.

I'm not sure who it was, but someone here asked why people on this site thought the Dems would raise taxes if/when they gained control of the House.

The one good thing, if any, to come of it for those who are affected by this proposal (from an individual AMT perspective) is that at least it takes the annual guessing game out of determining whether you will fall into AMT or no.

Maybe Viper is onto something with his phony tax shelters....

[il Padrino Ute]

Originally Posted by TripletDaddy

The one good thing, if any, to come of it for those who are affected by this proposal (from an individual AMT perspective) is that at least it takes the annual guessing game out of determining whether you will fall into AMT or no.

Maybe Viper is onto something with his phony tax shelters....

Well, I've been fortunate in that I just take all my papers to the guy who does my taxes for me (my best friend since elementary school) and he took care of me. So, it takes the guessing game out of that determination for him.

[Detroitdad]

Originally Posted by TripletDaddy

Wow. I can tell you feel very strongly about this issue.

He does this every time the word "tax" is written. It is the sum total of his contribution to the political forum.

We love him anyway, even though he bitches like he's Rockefeller.

[TripletDaddy]

Originally Posted by Detroitdad

He does this every time the word "tax" is written. It is the sum total of his contribution to the political forum.

We love him anyway, even though he bitches like he's Rockefeller.

Well, for the record, it is only a proposal. Obviously, the Reps want to see an end to individual AMT, also, but not at the expense of effectively raising Cap Gains so much. I would expect there to be an interesting tussle of give and take over the next year or so on the Hill. Very interesting stuff.

Rockefeller was rad. Nice job at Attica, eh? Fortunately, they were only prisoners.

[il Padrino Ute]

Originally Posted by Detroitdad

He does this every time the word "tax" is written. It is the sum total of his contribution to the political forum.

We love him anyway, even though he bitches like he's Rockefeller.

I bitch about taxes as well, because I work hard to earn my money. I don't like the government stealing it from me.