The AMT is intended to impose a minimum tax on people that have substantial deductions or tax credits, such as a lot of children.
The most surprising tax trap on fees is the Alternative Minimum Tax.
But harmonising corporate tax and setting a minimum withholding tax on savings would be much harder to swallow.
Require U.S. companies with foreign operations to pay a minimum tax on overseas profits.
The Republican-controlled House has passed an economic stimulus package that includes new corporate tax cuts, including elimination of the alternative minimum tax on corporations.
Though many Democrats want to roll back Mr Bush's tax cuts for the rich, the party's energy, at least initially, will be on fixing the alternative minimum tax.
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Carney said Obama has long favored proposals "to ensure that American companies cannot use off-shore profit shifting to avoid paying taxes, " including a proposal for a minimum tax on foreign earnings.
Democrats say the most contentious debates will be over a Republican plan to do away with the alternative minimum tax on corporations and a Republican measure that accelerates the income tax rate cuts enacted last spring.
This essentially calls for a minimum tax on high-net worth individuals, similar to the one Warren Buffett proposed in his op-ed to the Times last weekend, but as Silver correctly points out, the implementation of such a minimum tax would have an unintended consequence.
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Since Warren Buffett first gave birth to the idea with a seemingly innocuous comment about the comparative tax rates paid by him and his secretary, the potential for a(nother) minimum tax on millionaires has been preemptively lauded by the left and ripped by the right.
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And it does so despite imposing the "Buffett tax" that amounts to a minimum tax rate on capital gains of 30%, only two months after the capital-gains rate increased to 23.8% from 15%.
And before you distribute a penny, ask your tax accountant to calculate the impact on your state tax bill and your federal alternative minimum tax liability.
Also, you could get pushed into the alternate minimum tax, depending on how the MLP treats depreciation.
No, really: if you work 25 hours a week on the minimum wage then your marginal tax rate is, without even considering any reduction in in work benefits, over 40% when you include both income tax and national insurance.
Silver illustrates this disconnect with a helpful table, which shows that by keeping the maximum rate at 35% but requiring a minimum 35% tax on all income at a certain threshold, the tax burden is shifted to those earning close to the threshold and away from those earning significantly in excess of the threshold.
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He would also repeal the alternative minimum tax and reduce taxes on capital gains and dividends to 12% but not eliminate them as Perry, Gingrich, and Huntsman would.
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On the other hand, the new minimum tax bill contains bad news for those who care about tax simplicity, the institution of marriage, and for some small business folks.
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Grassley's concern: a bill, headed for passage by the House of Representatives this week, to curb the ever-expanding alternative minimum tax by raising taxes on private equity and hedge fund managers.
He used the phrase "common ground" repeatedly, speaking of potential agreement on a higher minimum wage (if paired with tax cuts for small businesses) and seeing prospects for sweeping change in immigration laws and the management of Social Security.
Warren Buffett, in a New York Times op-ed, renewed his call for a minimum income tax of 30% on the wealthy to block them from taking advantage of concessional tax rates for dividends and capital gains, or seeking other tax shelters.
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The report's authors also called for more action by HM Revenue and Customs (HMRC) to tackle minimum wage violations and exploitative employers not passing on PAYE tax and National Insurance.
She usually focuses on individual provisions of the code, such as the Alternative Minimum Tax, or vexing tax administration problems.
"Combined with control of entitlement spending and a long-term solution to the Alternative Minimum Tax, this can have a beneficial effect on long-run growth, " the report says.
Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. (Applause.) From now on, every multinational company should have to pay a basic minimum tax.
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Possible tipping point: The alternative minimum tax, which makes state and city taxes nondeductible on federal returns, finally catches up with New Yorkers and the pampered municipal employees who ride on their backs.
The package of tax proposals that Baucus has tacked on his amendments to the minimum wage bill also includes several other provisions, including a proposal to push back the date of taxation on corporate inversions to March 20, 2002.
And while these losses are not subject to the 2% of AGI floor and are deductible in calculating alternative minimum tax, they will be subject to the overall limitation on the itemized deductions of a high-earning taxpayers under the newly-resurrected PEASE provision.
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Depending on where you live and whether you are subject to the federal alternative minimum tax (which determines whether you bear the full brunt of your state tax bill or can share it with Uncle Sam), the state tax penalty could easily be worth 35 to 50 basis points.
Other reasons to file include when you own special taxes like the alternative minimum tax (AMT), household employment taxes, taxes on retirement accounts or Social Security and Medicare tax on tips you did not report to your employer or on wages from an employer who did not withhold those taxes.
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