Yesterday Leonard Burman of the Tax Policy Center testified before the House Ways and Means Committee about Alternative Minimum Tax (AMT). The AMT is a provision in the Tax Code that disallows deductions and exemptions after you reach a certain income. It was enacted in 1969 when people complained to congress that 155 of the wealthy were taking advantages of the exemption and deductions to avoid paying taxes (History of Alternative_minimum_tax: click here). The problem is that the AMT was never adjusted for inflation. Burman explain to congress that a lot of tax payers, middle class tax payers, find themselves liable for the AMT Burman's statement He warns that unless something is done, more tax payers would find themselves liable to the IRS in spite of the Bush tax cutes. He advocated replacing the AMT with a surtax that would only apply to the wealthy Surtax - Wikipedia, the free encyclopedia.
I have a better idea, flat tax. I believe we should remove the DOUs (deduction of understanding) and AMCs (Alternative Minimum Confusion) and ask people to pay 5% of earnings. One exemption, people with monthly earnings of $2,240 or less. People who are in this income range are high school and college students, seniors working at Mc Donald’s, and other people who are going month to month trying to get by. These people should be allowed to keep their money.
As for the rest of us, all we have to do is have 5% deducted from our earnings. I believe filing should be optional. We shouldn’t have to tell the government about the money we give them. And I believe that 5% would be enough to fund the government, we should make cutes to some programs and privatization to others. The less we spend to the federal government, the more we have to pay to the state government, and charities.
In other news, the U.S. Supreme Court would take up the D.C gun ban case D.C gun ban case Lets see if the Roberts Court rule the 2nd amendment protect individual rights. Petraeus told the Boston that he would recommend troop reduction starting next spring Petraeus interview The recommendation is based on the progress in Iraq. Did I say progress? Well, yes!!! If Democrat leadership and the antiwar left give the surge a chance, there would be a gradual withdraw of U.S. troops as Iraqi troops stand up.