Posted: Jun 24, 2005 By: richard lemke

Subject: AMT Revision Necessary

Comment: I believe in the system, and that everyone should pay their fair share. However, I'm concerned that as more taxpayers are hit by historical AMT thresholds, particularly the upper middle-class - where the hardworking, two-income families are - our tax system will be grossly undermined.

Another aspect of the AMT that should be addressed:
NYT/BUSINESS/FINANCIAL DESK | March 31, 2005, Thursday

Windfall Never Came; Big Tax Bill Did

By FLOYD NORRIS (NYT) 1960 words
Late Edition - Final , Section C , Page 3 , Column 1

ABSTRACT - Ronald J Speltz and his wife, June, exercised incentive stock options on McLeodUSA in 2000 when stock was high, but did not sell shares until they had lost almost all of their value; under alternative minimum tax rules, Speltzes ended up owing taxes on phantom profits; Speltzes wound up owing $224,869 in federal taxes and $56,769 in Iowa state taxes, most of which they cannot pay, on profits they never saw; Robert M Brown, associate chief counsel of IRS, agrees there is an issue regarding stock options affected by alternative minimum tax but there is nothing that can be done administratively
PURCHASING FROM NYTIMES.COM IS QUICK AND SECURE.