Take Two translates the day’s headlines for Southern California, making sense of the news and cultural events that affect our lives. Produced by Southern California Public Radio and broadcast from October 2012 – June 2021. Hosted by A Martinez.
President Obama is focusing on the looming fiscal cliff and how to get Congress to agree on a plan to extend at least some of the Bush-Era tax cuts.
If that effort fails, virtually every American's taxes will increase, and tens of millions of American households will have to use two different formulas for figuring their taxes.
That's because of something called the Alternative Minimum Tax, or AMT. It was designed to make sure millionaires paid at least some taxes, but if we fall over the cliff, the AMT — which already penalizes many middle class families — will suddenly be a reality for even people of modest income.
Here with the low-down on the dreaded Alternative Minimum Tax, KPCC's Matt DeBord.