A Tab Meant For The Few Will Nab Many
This spring, the Internal Revenue Service will treat many middle-class taxpayers as if they were millionaires. Half of the 2 million households expected to run afoul of the alternative minimum tax--designed to prevent the wealthy from sheltering income--earn $30,000 to $100,000. By 2007, 8.4 million taxpayers, or 1 in 16, should owe the AMT, which imposes a heavier burden than ordinary income tax by taxing items normally removed from Uncle Sam's reach.
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