How the Alternative Minimum Tax Traps Middle-Class Families

Episode 110 of The Tax Policy Podcast dives into the Alternative Minimum Tax — a parallel tax system originally designed to catch wealthy tax avoiders. Lucas and Luna explain how the AMT now ensnares middle-class families, especially those with high state taxes, large families, or incentive stock options. Using the 2026 thresholds and the story of a typical California family earning $250,000, they reveal why 1.2 million households will pay an extra $8,000 on average this year. They also discuss bipartisan reform efforts from Senators Warren and Young, and what listeners can do to check their exposure. A specific, practical look at a tax trap that's anything but simple. #AlternativeMinimumTax #AMT #TaxPolicy #MiddleClassTax #TaxReform #FamilyTaxBurden #StateTaxDeduction #IncentiveStockOptions #ElizabethWarren #ToddYoung #IRS #TaxPlanning #2026Taxes #Economics #FexingoBusiness #BusinessPodcast #TaxCode #FiscalPolicy Keep every episode free: buymeacoffee.com/fexingo