Illustrating once more why he is the most retarded Vice President this country has had, Joe “Bite-Me” Biden is publicly calling for even more taxes while we are still in the recession that he and his master have been prolonging. Hopefully, this kind of candor will have the same result this November as when Walter Mondull promised to raise taxes in the 1980 election; a 49 state landslide win by the GOP candidate.
Of course, since he considers himself to be a messiah, he truly believes that the consequences faced by a mere mortal such as Walter Mondull simply don’t apply to the all powerful Chosen One, Barack Hussein.
As if the current alternative minimum tax calculation weren’t insane enough, some of our DemonRat rulers in DC are considering adding a second one that they are naming after their Class Envy Clown, Warren Buffett.
Households with adjusted annual gross incomes over $1 million would prepare their taxes as they do now, with all the deductions, credits and loopholes intact. They would also calculate what 30 percent of their adjusted gross income amounts to. They would then pay whichever amount was larger.
How long do you suppose it will take for that million dollar threshold figure to drop and ensnare millions more, just as the current AMT has?
Just trying to get a handle on what my liability will be. Last year we crept over the line and we subject to AMT for the first time. I suspect we will be again this year, but would like to get a better fix on how big it will be.
thx
A:
As part of the big bail-out bill that was passed last month, the AMT exemption amounts were increased for 2008 to:
$46,200 for people filing as Single or Head of Household $69,960 for Married Filing Joint or Qualifying Widow $34,975 for Married Filing Separate
As it stands now, these amounts will drop for 2009 to:
$33,750 for people filing as Single or Head of Household $45,000 for Married Filing Joint or Qualifying Widow $22,500 for Married Filing Separate
Whether those figures will be changed is completely up in the air now that we have an anti-success Socialist administration ready to take over control of the tax code next year.
You can download the complete 24+ page pdf summary of the latest tax bill from The TaxBook at:
The longer this mess drags on in DC, in terms of our rulers officially addressing this fiasco, the more obvious is their utter incompetence at dealing with common sense. While they may not agree with me that the entire AMT system should be jetisoned, how hard is it to understand the need to at least adjust the threshhold figures for inflation, as most other items in the tax code already are?
Taxing Time for Democrats? – A reminder by Michael Barone of what a messy tax planning environment we are looking at over the next few years. The increasing hit by the Insane AMT, as well as the upcoming expirations of the Bush tax cuts, are going to make realistic tax planning nearly impossible.
Again, this means more work for us in the tax minimization profession than we have ever seen before. Each change in the tax code will require more client consultations. Anyone who worries about being able to earn a good living in the tax business is crazy.
Tax Guru - Ker$tetter Letter 