Congress has passed what is being called an AMT "patch" for the 2007 tax year. Unfortunately, they have yet to provide details as to what this patch is, but details should be released in the next few days.
As mentioned in previous posts, AMT is an alternate tax calculation that recomputes the tax liability by using a flat tax rate and eliminating several deductions such as state taxes and exemptions.
The reason Congress is acting is primarily due to the fact that approximately 20,000,000 taxpayers will be ensnared in the system this year and no one wants to confront voters in 2008 if so many people are subject to a tax that makes little sense.
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