Some of those who voted for President Barack Obama, so that the rich could pay higher taxes, may find themselves in that “rich” category when paying their 2013 taxes. I suggest that people who are unfamiliar with AMT – the Alternative Minimum Tax – become familiar with it quickly.
If the Bush tax cuts are not extended, which we all know they won’t be under Obama, the AMT rates will fall back to what they were in 2000. Or maybe Obama will adjust them even further to affect us “rich” families.
In 1970, only 19,000 people paid AMT; today it is millions of people, and soon to be more. Inflation has raised people’s incomes, but the AMT rates have not been adjusted for inflation and the exemption and phase-out amounts are poised to drop to lower amounts in 2013.
Rich is a relative term, and Obama is dividing our nation with this class warfare. We would all be wise to remember the commandment, thou shall not covet (your neighbor’s earnings).