Topic: Amt

The "fiscal cliff" poses a significant threat to 30 million Americans due to the scheduled expiration of Alternative Minimum Tax (AMT) patches. If no deal is reached, the AMT exemption threshold will drop significantly, potentially adding thousands of dollars to the tax bills of middle-class households. The hosts argue that both political parties are complicit in allowing this "tax bomb" to remain under-discussed.

John C. Dvorak warns listeners about the impending impact of the Alternative Minimum Tax (AMT) as the U.S. approaches the "fiscal cliff." He explains that many middle-class taxpayers could face unexpected tax bills of $2,000 to $10,000 because the AMT eliminates standard deductions. The hosts criticize the mainstream media for failing to warn the public about this specific financial threat.

A detailed explanation of the Alternative Minimum Tax (AMT) reveals a looming crisis for 30 million Americans. Without a congressional "patch" for the 2012 tax year, the AMT will trigger significantly higher tax rates for those earning around $70,000. The hosts highlight that this issue affects the current tax year and will be felt by taxpayers in early 2013.

The history of the Alternative Minimum Tax (AMT) is traced back to 1970 when Treasury Secretary Joseph Barr discovered 155 high-income households paid zero taxes. Current CBO projections suggest the Buffett Rule would only generate $47 billion over ten years, a fraction of the overall deficit.