ERIN SCHARFF

Almost one-third of taxpayers earning between $200,000 and $500,000 will pay the AMT, and about 62 percent of those earning between $500,000 and $1 million will. Thanks to the deductions it targets (which make a bigger difference for the next-highest brackets), only one-fifth of those earning more than $1 million pay the AMT. For its disproportionate effect on the well-off rather than the fabulously rich, a truly full-throated defense of the AMT is impossible. Yet for all its flaws and all its enemies, the AMT also solves a real problem. It prevents wealthy and well-advised loophole-seekers from finding ways to evade taxes altogether. It ensures that some people who write off large losses still contribute their share to the national treasury. In 2005, the AMT forced the Trumps, a tremendously rich family, to pay a substantial amount in taxes. Ultimately, the reason the AMT plagues the upper middle class is that the regular taxes imposed on them are historically low. Proposed income tax cuts would only exacerbate this problem. That’s why repealing the AMT is so difficult. Until we can reform our regular tax code in ways that more equitably raise revenue, it’s also what makes repealing the AMT a bad idea.

Almost one-third of taxpayers earning between $200,000 and $500,000 will pay the AMT, and about 62 percent of those earning between $500,000 and $1 million will. Thanks to the deductions it targets (which make a bigger difference for the next-highest brackets), only one-fifth of those earning more than $1 million pay the AMT. For its disproportionate effect on the well-off rather than the fabulously rich, a truly full-throated defense of the AMT is impossible. Yet for all its flaws and all its enemies, the AMT also solves a real problem. It prevents wealthy and well-advised loophole-seekers from finding ways to evade taxes altogether. It ensures that some people who write off large losses still contribute their share to the national treasury. In 2005, the AMT forced the Trumps, a tremendously rich family, to pay a substantial amount in taxes. Ultimately, the reason the AMT plagues the upper middle class is that the regular taxes imposed on them are historically low. Proposed income tax cuts would only exacerbate this problem. That’s why repealing the AMT is so difficult. Until we can reform our regular tax code in ways that more equitably raise revenue, it’s also what makes repealing the AMT a bad idea.