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FBN’s Liz MacDonald on the alternative minimum tax kicking in tomorrow morning without a deal on the fiscal cliff, to the tune of $86 billion.
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Ill will that -- very probably hates everybody.
And it's called the Alternative Minimum Tax is that right lives but don't affect elevated amendment struggle -- Unless a fix for the AMT is included in any deal which may or may not come out of the fiscal -- -- unless you get a fix now.
The Alternative Minimum Tax kicks in full force.
Tomorrow morning yes.
And -- hit millions and millions and millions of people to the tune of 86 billion dollars correct.
And that's on top -- tax rates going up across right -- So what we're talking about it and let me just break it down because the AMT cents monkey but it's easy -- -- and in 1969 congress that.
Wait a second we want to make sure the rich pay their fair pay more -- some kind of tax so what they did was they basically set up -- secondary tax system.
For the upper bracket for four million high income people.
Where they load back in deductions and Vietnam but but let me just back up this is important is now seven times more of those 4000028 million people.
We'll have to pay the AMT if it's not that it.
What I'm looking for that's re looking for if there is no fix today.
Asset tomorrow 28 million people will be eligible to pay the Alternative Minimum Tax -- -- -- and it will cost an 86 billion dollars combined yeah.
An H&R block is putting out a warning H&R block is warning taxpayers are saying wait a second.
Instead of the tax refund -- into the average refund eleven around 11100 dollars where.
Stanley 85000 with two kids in making -- 5000 that 11100 dollar refund it turned into a 14100 dollar tax bill instead so that's a big.
However there's nothing to stop congress when it reconvenes the new congress when it reconvenes retroactively saying we patched it you don't have to play.
The impact should be you know for twenty all -- and -- that the less I was patch was in December 2011.
So you know I don't know what they're doing an -- I don't actively site -- -- -- think could but the thing is that now when you're hearing H&R block warning -- when you hear that they you know the big accounting firms.
Warning this when you hear the -- saying tax refunds maybe delayed when Treasury Secretary Tim Geithner is saying we may have a problematic tax filing season it's because of things like -- subsidy.
Can I if I'm thing that -- may be subject to the AM today.
I really can't do my tax return until -- find out the definitive Wu.
Yep that's right and then what we're hearing -- -- -- -- -- -- the do it until March -- -- all these -- get fixed so I'm thinking that it will happen it will get fixed.
But we're in for a rocky tax filing season yeah exactly that's what we're headed to mess the tax filing season is an absolute mess and not just for federal laws were state local to state and local or hints of the federal.
System as well well what -- meet messed up to the president wants to tax the rich wouldn't he want to impose the am to even get 86 billion dollars extra 28 -- of the middle class and yet that's we're talking about but in also in the other point to be made.
California viewers are gonna get really -- -- the worse those New York managers and athletes in our -- saying.
Because of the -- I think it's structured.
You know we've talked about the seven -- also the Islamic your tax that there are seventy tax breaks expiring.
That would help the middle class two and their expiring today so that you know -- -- -- Political point which is this is why I've said for weeks that the president wants to go over the fiscal cliff because then he comes in.
January 7 the rape -- and does all these tax cuts that actually are are getting rid of these tax increases but it'll be very Obama tax cuts instead of the bush had to live with respect I -- so we go over the cliff.
The Republicans get the blame the president flies in and says I'm fixing everything and -- he lowers tax.
But they wouldn't be fixing anything we just keeping ardidi going to be cannot be keeping in place you right there lately hang on the bush tax rates for the middle class that's a -- -- debate.
The middle class tax rates came in the Bush Administration that's -- -- -- more poor people were exempted from taxes.
Under the under the Bush Administration more poor people were exempted from taxes.
Under the Bush Administration that data comes from the nonpartisan Congressional Budget Office so you know and let the fat -- bush tax cuts -- Federal revenues came pouring in 30% higher -- 01 you know three that's none -- -- -- that pleased to -- message in this thank you very much indeed sure.
No matter while the out.
