Welcome to the AMT: the alternative minimum tax.
The AMT will drop down in 2013 to people who make $65,000 a year or more. It presently hits only people making over $400,000.
Americans have not budgeted for this.
Here are other things they have not budgeted for.
No more deduction for state and local sales taxes. (If you live in a state with no sales tax, no problem.)
No more deduction for college tuition paid for your kids.
No more deduction for mortgage interest insurance.
A little here, a little there: it adds up.
Will the revenues generated balance the federal budget? No.
Is there any hope for balancing the federal budget? No.
Is anyone in Washington in favor of balancing the federal budget? Ron Paul. He leaves office on January 2.
To pay off the national debt, is it enough to balance the budget? No. The government would have to run a surplus.
But if the $16 trillion were paid off, would we be off the hook? No. We are running a real deficit of $11 trillion a year. But it’s not counted.
So, is there no hope? Of course, there’s hope. The government will default on its promises.
But what if the promises were made to you?