|Knoll Finds Proposed Tax on Fund Managers of Questionable Value
BY JENNIFER BALDINO BONETT
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The AMT, enacted in 1969 to ensure the most wealthy
Americans paid at least a minimal amount of tax, is about
to reach down the economic ladder and apply to more than
23 million American taxpayers — many of them middle-class
and married with children — when they file their 2007 returns.
And that number could increase exponentially in the
next three years.
In what experts call a “design flaw,” the AMT is not adjusted
for inflation, allowing the arm of the tax to grow longer.
Without a change in law, experts report, more than 30 million
taxpayers will become subject to the AMT by 2010, and that
number could increase to 53 million by 2017. Those figures
stand in stark contrast to the 20,000 taxpayers affected by the
AMT in 1970.