Reply #14: AMT is actually very simplified. [View All]

[Statistical]

The "problem" is that AMT isn't adjusted for inflation.

It could be solved forever by simply passing legislation to index all components of it to inflation.

Even better it could be indexed to an annualized distribution of income so that that the threshold was placed at 95% percentile of household incomes.

Congress has INTENTIONALLY never solved it. It could have been solved permanently forever any year in the past (and could also be solved this year or next year).

They hold it out and make a 1 year "fix" because it is a huge barganing chip. Usually a couple thousand earmarks and amendments get attached to the "AMT fix" bill.