The alternative minimum tax would be imposed on more Americans
An alternative minimum tax would be imposed on about 26 million households, which would raise their taxes by an average of $3,700.
The alternative minumum tax was designed to prevent rich people from exploiting loopholes and deductions to avoid any income tax. But it wasn’t indexed for inflation, so Congress has acted each year to prevent it from encroaching upon middle-income taxpayers.
The lowest 20 percent of earners would pay an average of $412 more if the alternative minimum tax is imposed, according to the Tax Policy Center. The center calculates that the top 20 percent of earners would pay an average of $14,000 more, and the top one percent of earners would pay $121,000 more.