The Alternative Minimum Tax for Individuals: Legislative Initiatives and their Revenue Effects New! May 8, 2006
Congressional Research Service - Library of CongressThe alternative minimum tax (AMT) for individuals was originally enacted to ensure that all taxpayers, especially high-income taxpayers, paid at least a minimum amount of federal taxes. However, the AMT is not indexed for inflation, and this factor, combined with the recent reductions in the regular income tax, has greatly expanded the potential impact of the AMT.
Temporary provisions intended to mitigate the effects of the AMT expire at the end of 2005. If this occurs, then the number of taxpayers subject to the AMT will increase from 3 million in 2004 to 21 million in 2006. The Congressional Budget Office estimates that extending and indexing the 2006 AMT parameters would reduce federal revenue by $191 billion over the next five years.
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American Benefits Council Submission to the President's Advisory Panel on Tax Reform
American Benefits CouncilSection "Future Stock Plans", Page 9 - Currently an estimated 8 to 10 million employees hold stock through broad-based stock option plans. We recommend to exempt incentive stock option transactions from the Alternative Minimum Tax (AMT).
| GAO Tax Policy Estimates of the Costs of the Federal Tax System
United States General Accounting OfficeIn 2005, Americans will pay about
$2.1 trillion in combined federal
taxes, including income, payroll,
and excise taxes, or about 16.8
percent of Gross Domestic Product
(GDP). However, the amount of
taxes paid does not reflect the total
cost to taxpayers of the federal tax
system. In response to a congressional
request for information on the
magnitude of the compliance and
efficiency costs of the current
federal tax system, this study
describes the nature of these costs,
presents the difficulties associated
with estimating them, and
summarizes existing estimates of
their magnitude.
| Alternative Minimum Tax - An Overview of Its Rationale and Impact on Individual Taxpayers
United States General Accounting OfficeThis report is a nontechnical primer on the alternative minimum tax (AMT) for individuals, which is intended to help ensure that high-income individuals do not avoid significant tax liability.
| 2000 Stock Plan Design and Administration Survey
National Association of Stock Plan Professionals and Price Waterhouse CoopersReport on the use of stock options by industry, demographics, and employee type.
| The Individual Alternative Minimum Tax: A Data Update
Leonard Burman and William GaleThe individual alternative minimum tax (AMT) was intended to guarantee that high income people paid at least some tax, but it is poorly designed. Absent a change in law, close to 30 million taxpayers will become subject to the AMT by 2010. This data update presents new data for the tables in our July 2003 Tax Notes article and expands on the reform options presented in the Spring 2003 Journal of Economic Perspectives article.
| Joint Venture's Tax Policy Group's Position Paper
Joint VentureJoint Venture's Tax Policy Group's Position on the Alternative Minimum Tax and Incentive Stock Options.
| Treasury and IRS Finalize Regulations for Incentive Stock Options
Department of TreasuryThe Treasury Department and the IRS issued final regulations on
incentive stock options ("ISOs"). These regulations finalize, with
modest changes, regulations proposed in 2003.
| AMT - A Clear and Present Danger
Michel Nelson, Steve LeimbergSteve Leimberg's Newsletter delivers a report on AMT from Mike Nelson. Its short, but illustrates the horror in store for middle class.
| Statement of Karen York
Karen York, Scot Forge CompanyStatement of Karen York, Staff Accountant, Scot Forge Company, Spring Grove, Illinois, on behalf of the ESOP Association before the Subcommittee on Oversight of the House Ways and Means Committee during a hearing on employee and employer views on retirement security. March 5, 2002
| The Enormous Complexity of Being Fair
Hal Gann, Miller & Chevalier and Roy Strowd, Price WaterhouseHal Gann is a member of Miller & Chevalier, Chartered, in Washington. He served as an attorney-adviser and associate tax legislative counsel in Treasury\'s Office of Tax Policy from 1990-94. Roy Strowd is a partner with Price Waterhouse, LLP, in Portland, Ore. He served as an accountant-adviser in the Office of Tax Policy from 1989-92. Each month, the authors will analyze a recent development in tax guidance, e.g., regulation, IRS pronouncement, statute, or court decision. They will offer their insights and suggestions, and hope that readers will, as well.
| New and Improved AMT
Joel Michael, Minnesota House of RepresentativesJoel Michael, Legislative Analyst at the Minnesota House of Representatives Research Department, offers a new and improved AMT.
| Inflation and the Individual AMT
Beth B. Kern, Indiana University South BendBeth Kern, an Assistant Professor of Accounting at Indiana University South Bend, discusses the complex relationship between inflation and the alternative minimum tax.
| Reforming the Alternative Minimum Tax System
Stewart S. Karlinsky, San Jose State UniversityIn a special report, Stewart S. Karlinsky describes how to reform the alternative minimum tax system.
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