The Alternative Minimum Tax (AMT) was passed in 1969 to prevent people with very high incomes from using special tax benefits to pay little or no tax.
The U.S. Congress enacted the AMT in response to the outrage generated when the Secretary of the Treasury testified before Congress that 155 people with adjusted gross annual incomes of over $200,000 (equivalent to $1.3 million today) had paid no federal income tax on their 1967 tax returns.
QUESTION: Today, almost 4 million U.S. taxpayers are subject to the AMT. In 2009, what percentage of U.S. Taxpayers subject to the AMT had Adjusted Gross Incomes (AGI) less than $1 million?
98.6 percent of those subject to the AMT in 2009 had incomes less than $1million. In addition, 91 percent of those subject to the AMT had incomes less than $500,000 and 50 percent had incomes less than $250,000.
Source: Table 1.4 Internal Revenue Service Tax Stats
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