How the Alternative Minimum Tax Still Snags Middle-Income Families

Episode 74 of The Tax Policy Podcast digs into the Alternative Minimum Tax (AMT), a parallel tax system originally designed to catch the ultra-wealthy but now quietly hitting middle-income families. Lucas and Luna walk through how the AMT works, why it still exists decades after its creation, and how the Tax Cuts and Jobs Act changed the number of people affected. They use specific numbers — like the current exemption thresholds of $85,350 for singles and $132,700 for married couples filing jointly — and highlight the most common AMT triggers: high state and local taxes, large medical deductions, and incentive stock options. The episode also explains why the AMT remains politically durable despite widespread criticism, and what small changes could fix it. #AlternativeMinimumTax #AMT #TaxPolicy #MiddleClassTaxes #TaxReform #Economics #FiscalPolicy #TaxCutsAndJobsAct #StateAndLocalTaxes #IncentiveStockOptions #IRS #TaxFiling #IncomeTax #TaxSystem #PolicyExplainer #FexingoBusiness #BusinessPodcast #TCJA Keep every episode free: buymeacoffee.com/fexingo