No it doesn't
by OrangeJubilee (2024-02-20 09:30:39)

In reply to: Pretty sure ths already happens for the upper middle class  posted by catripledomer

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I think you mean they pay at the AMT rate, which is 26% or 28%, well below their "regular income" marginal rate of 35% or 37%, and does not include SS and Medicare taxes that would add ~15% on. So it is still really advantaged vs. earned income.

Also, we are talking pretty far up the chain, not sure you can call anyone paying AMT "upper middle class". They are just upper class.

From the tax policy center:

"In 2019, the AMT impacted just 0.1 percent of households overall. This includes 0.2 percent of households with income between $200,000 and $500,000, 1.8 percent of those with incomes between $500,000 and $1 million, and 12.5 percent of households with incomes greater than $1 million (table 1)."

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