AMT Would Be Changed Under Obama Proposal

The Obama budget also proposes a permanent fix that would index the alternative minimum tax (AMT) each year for inflation. In the past, Congress has made an annual rite of adjusting the AMT so that it did not continually affect more people, a problem created by the fact that when the law was passed in 1987, there was no provision for indexing it for inflation. The proposal has a good chance of becoming law.