Okay, so the damn thing was flawed because it wasn’t indexed for inflation.
So why don’t they enact legislation to change it, correcting the mistake? Seems like a no-brainer.
Because the AMT brings in a lot of revenue, and any attempt to correct it would have to be offset by raising taxes elsewhere, cutting spending or expanding the debt.
That’s too simple an answer. They got move revenue when the tax rates were higher; didn’t stop them from lowering the rates.
That’s still the right answer, though.
Agree with John and flurb. It was easy to overlook, but as the number of taxpayers hit by the AMT continues to grow, so will the backlash. It’s nearing a critical point, as it is hitting many house-rich suburbanites.