Alternative minimum tax burns some unsuspecting Long Islanders
Tax experts are warning Long Islanders about the alternative minimum tax (AMT), which could force thousands of unsuspecting taxpayers to shell out thousands of dollars.
Experts say the tax was enacted in the 1960's to ensure that the ultra-rich were forced to pay taxes. However, they say income guidelines have not been adjusted for inflation, so average taxpayers are being penalized due to the high cost of living on Long Island.
Senator Charles Schumer (D-New York) predicts 47,000 families on the Island will be hit with the tax for the 2005 tax year. He says he expects that number to nearly quadruple in 2006. Schumer is pushing for Congress to repeal or at least freeze the AMT, and adds that voting on tax reform should happen in the next few weeks.
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