The New Tax Trap

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*SO IS THE AMT POLITICALLY MOTIVATED?

Some charge that Republicans have been slow to act on the AMT because it strikes traditionally Democratic states hardest. There is no denying that Democratic strongholds New York, New Jersey, Massachusetts and California are top AMT payers, mainly because of their above-average incomes and state and local tax burdens--two key AMT triggers. "There are some conservatives who look at that with a certain glee," notes Len Burman, a co-director at the Tax Policy Center in Washington. But with the AMT about to swamp the middle class in all states, both sides of the aisle have plenty to lose as taxpayer frustration builds.