Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
In case you haven’t been paying attention, President Obama is expected to announce a bevy of proposed changes that are aimed at reducing the deficit. Perhaps the most intriguing of these is the so-called “Buffett Rule,” which will be a new minimum tax rate for individuals making over $1M/year.
Details still aren’t available, but it sounds like this new rule (if adopted) could do what the Alternative Minimum Tax (AMT) was intended to do when it was introduced back in 1969 – i.e., prevent the richest households from getting off with little or no tax liability despite being in a high income tax bracket.
Here’s what the IRS says about the AMT:
The tax laws give preferential treatment to certain kinds of income and allow special deductions and credits for certain kinds of expenses. The alternative minimum tax (AMT) attempts to ensure that anyone who benefits from these tax advantages pays at least a minimum amount of tax.
Unfortunately, the AMT was never indexed to inflation, so there’s a mad scramble every year by Congress to patch the law and increase thresholds. Even still, the AMT currently hits millions of taxpayers that it was never intended to hit.
Not surprisingly, the Buffett Rule has already stirred up a ton of controversy, and the details aren’t even known yet. Setting politics aside, I’m intrigued by the possibility of replacing the AMT with a new system that actually does what it’s supposed to do. I’m definitely curious to hear more.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (227)
- Will Mac OS X Lion Kill Quicken 2007? (191)