Forget About the Fiscal Cliff, the AMT Will Rob You Blind

While the nation’s eyes are affixed firmly on the future tax implications of the fiscal cliff negotiations, few people realize that they stand to pay larger tax bills in 2012 courtesy of a little something Congress could have — and should have – taken care of long ago: the exemption to the alternative minimum tax (AMT). As a reminder, the AMT is a parallel tax system that was originally designed in 1969 to guarantee that 155 wealthy, enterprising taxpayers would pay some amount of federal income tax. But like the pet alligator that quickly outgrows the family stupid enough to own it, today the AMT threatens to devour us all.

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