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View Diary: Public ready to blame Republicans if fiscal cliff talks fail (132 comments)

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  •  You are spreading fud at this point (1+ / 0-)
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    Womantrust

    Do some research.  

    I have no idea where that 4000 number came from, after extensive looking.  My guess is that's the average cost of the AMT not being patched divided by the number of married joint filers in that bracket.  It's not in the Tax Policy Center study, that I can find.  You tell me if you can find it http://www.taxpolicycenter.org/...

    The Tax Policy Center, who's relied upon for that study, certainly does not make that claim.  They point out that there are a lot of factors in how much it would affect you - are you in a high tax or low tax state, how many deductions and exemptions(including for children) you take, etc.  By their estimates half of joint filers in the 75-100k range would not be affected by the lack of a patch at all.

    In other words, couples who make from 75k to six figures ARE NOT going to each face a 4000 hike in taxes.  About half of the couples who make six figures may face a raise in their effective tax rate, which depends in large part upon where they live and how many kids they have.  A fraction of folks in the top 20% of household income can manage a change in their discretionary income.  I refuse to let this false crisis act as cover for cutting programs for the poor and retired.
     

    •  That was harsher than I meant (0+ / 0-)

      To be - I don't believe you're deliberately spreading misinformation, and I'd like to apologize for that.

      I just don't like seeing these memes spread and take a life of their own.  

    •  You are looking at the wrong TPC study (1+ / 0-)
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      VClib

      The one involving the fiscal cliff, that prompted the news reports last month, is here.

      From the study:

      Upper middle-income households would be particularly affected by the expiration of the
      AMT patch.
      Finally,  the AMT “patch” that protects tens of millions of taxpayers from additional taxes expired at the end of 2011. Unless Congress extends the patch retroactively,
      many taxpayers will owe AMT on their 2012 tax returns (the tax returns that people will file in early 2013).                                                
      Temporary Increase in AMT Exemption. The AMT operates parallel to the regular tax and sets a
      floor on total tax liability. Taxpayers whose income exceeds the AMT exemption must calculate
      both regular tax and AMT liabilities and pay the larger amount. 6  EGTRRA temporarily increased
      the AMT exemption to preclude the alternative levy’s reducing the impact of other tax cuts in the
      legislation. Since then, Congress has repeatedly “patched” the AMT by setting higher exemptions but only for a year or two at a time. The most recent patch, enacted in 2010, covered  tax years 2010 and 2011 and raised the 2011 exemption from $45,000 to $74,450 for couples and  from $33,750 to $48,450 for others. If Congress does not enact another patch and extend it
      retroactively to the current year, the AMT will hit tens of millions more taxpayers, boosting their
      2012 tax liability substantially.
      And there are charts showing the additional liabilities for various kinds of taxes at different levels.
      •  Thanks for the link (0+ / 0-)

        Apologies again for being rude.  

        From your link, Table 6 shows the change in average tax liability by quintile.  For the top 20% quintile, which starts at 88k for married filing jointly, the average AMT change is only 1,265.  So I am still inclined to believe the 3700 number is based on misreporting from the Tax Policy Center.

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