Forget the Cliff: Why the AMT is the Real Taxmageddon

Right now as far as the IRS is concerned, the AMT for 2012 has the same parameters as it did 20 years ago, in 1993, the last time congress made a permanent change to the income thresholds [1]. If that doesn’t sound too bad, consider there has been 60% inflation since then. So, if nothing happens before the year ends then 25 – 30 million taxpayers will be in for a rather unhappy New Year greeted with higher bills and smaller reduction opportunities.