Len Burman et al. on the Alternative Minimum Tax …

Len Burman et al. on the Alternative Minimum Tax

Interesting the politics of tax policy. You hear raise taxes, lower taxes, but in reality revenue needs to be had and services need to be paid for (especially new, expense entitlement programs, cough cough perscription drugs). This article talks about the AMT. If the politicians do nothing, more and more folks will be subject to the alternate tax and the politicians, in effect, have raised taxes and nobody can hold them responsible.

Another example is the hullabaloo regarding expensing stock options. Stock gains (aka capital gains) are taxed at a famous maximum of 15%. Income is taxed upwards of 35%. Assume the policy change encourages companies to switch from stock options to straight salary compensation and you’re talking a 20% tax increase on the margin!

Even better, wages are subject to workers comp whereas stock option compensation is not.

In any case, they’ve risen taxes with impunity. What a deal!