Comments on: Why The Alternative Minimum Tax Should Be Wiped Out http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/ Big Teeth. Huge Ass. Surprisingly Reasonable. Tue, 14 Feb 2012 14:03:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tom http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/comment-page-1/#comment-281360 Tom Thu, 22 Mar 2007 23:43:24 +0000 http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/#comment-281360 Their financial adviser should be sued, then shot. Then sued again. However, this isn't a problem with the AMT. Taxing people on exercised options really isn't unreasonable. Their problem is, they didn't put aside the money to pay the taxes when they exercized the options. Whenever you realize a taxable event, you should ALWAYS put aside the money to pay those taxes. Frankly, the AMT isn't that unfair a system. Their financial adviser should be sued, then shot. Then sued again.

However, this isn’t a problem with the AMT. Taxing people on exercised options really isn’t unreasonable. Their problem is, they didn’t put aside the money to pay the taxes when they exercized the options.

Whenever you realize a taxable event, you should ALWAYS put aside the money to pay those taxes.

Frankly, the AMT isn’t that unfair a system.

]]> By: Kevin http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/comment-page-1/#comment-277775 Kevin Tue, 20 Mar 2007 15:47:00 +0000 http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/#comment-277775 Wow, these people got some exceptionally shitty advice from their broker as well as their tax preparer. I seriously wonder if they could sue. The first rule of investing is diversify. These people were in their 50's and they're getting advice to leave 90% of their paper wealth in one high risk company. As for the AMT, definitely broken and needs to be fixed yesterday. Wow, these people got some exceptionally shitty advice from their broker as well as their tax preparer. I seriously wonder if they could sue. The first rule of investing is diversify. These people were in their 50′s and they’re getting advice to leave 90% of their paper wealth in one high risk company.

As for the AMT, definitely broken and needs to be fixed yesterday.

]]> By: machine http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/comment-page-1/#comment-277598 machine Tue, 20 Mar 2007 13:03:36 +0000 http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/#comment-277598 It certainly doesn't help that the Bush tax cuts reduced regular tax liability, pushing more people below the cutoff where the AMT kicks in. The irony is so...ironic. A rational first move would be to peg the AMT to inflation, otherwise as inflation and nominal incomes rise more & more middle-class taxpayers will fall within the AMT's static bracket. The AMT is now strangling an entirely different class of taxpayer than it was intended to affect. It certainly doesn’t help that the Bush tax cuts reduced regular tax liability, pushing more people below the cutoff where the AMT kicks in. The irony is so…ironic.

A rational first move would be to peg the AMT to inflation, otherwise as inflation and nominal incomes rise more & more middle-class taxpayers will fall within the AMT’s static bracket. The AMT is now strangling an entirely different class of taxpayer than it was intended to affect.

]]> By: bob in fl http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/comment-page-1/#comment-276972 bob in fl Tue, 20 Mar 2007 05:40:04 +0000 http://donklephant.com/2007/03/19/why-the-alternative-minimum-tax-should-be-wiped-out/#comment-276972 I don't think we should throw out the baby with the bathwater. There should be a much higher floor for this kind of tax. Example: William Clay Ford, I am sure has hundreds of millions invested in Ford stock which he will never sell. His net paper profits should be taxed because he can afford it. However, if he suffers a loss over a year, he should also be able to claim that loss all at once on his return. The system definitely needs fixing. In this case, the IRS is screwed up again because you can't sue a tax preparer for errors. And their Tax preparer is more responsible fo0r their plight than the IRS. I don’t think we should throw out the baby with the bathwater. There should be a much higher floor for this kind of tax.

Example: William Clay Ford, I am sure has hundreds of millions invested in Ford stock which he will never sell. His net paper profits should be taxed because he can afford it. However, if he suffers a loss over a year, he should also be able to claim that loss all at once on his return.

The system definitely needs fixing. In this case, the IRS is screwed up again because you can’t sue a tax preparer for errors. And their Tax preparer is more responsible fo0r their plight than the IRS.

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