Monday, April 04, 2011

Slay Which Tax 'Monster'?

Veronique de Rugy argues here that we should eliminate the Alternative Minimum Tax.

Her points are fair enough, but if we are going to argue for such a large move in the tax code, I would instead suggest that we eliminate the traditional part instead and put everyone on the AMT. That would broaden the base, and allow us to lower the rate, which offers better incentives all the way around.


John said...

That's quite brilliant.

Pavel Yakovlev said...

That's an interesting idea. Will a broadened AMT generate enough revenue without substantially tweaking the rates?