Fiscal Cliff Could Bring Missoulians AMT Shock [AUDIO]
If Congress and the President don't take action soon, a combination of tax increases and spending cuts called 'The Fiscal Cliff' will occur. But, there's also.. 'AMT Shock'.
It's all about what is called the Alternative Minimum Tax, established back in the 1960's to make sure the super-rich don't get off scott-free without paying any taxes at all. Over the years, the AMT has been inching closer and closer to the middle class, and with the fiscal cliff, millions may be paying more taxes they they ever have before.
CPA Walt Kero with JCCS in Missoula, says the AMT could affect couples with large families by ending the child credit deductions...or it could also gobble up the home mortgage interest deduction that millions of families take advantage of every year.
Kero has a colorful metaphor to describe the impact of the fiscal cliff. In the movie 'Animal House', when the character played by Kevin Bacon is being paddled by a fraternity brother, he turns and says.. 'Please, may I have another'?
Missoula CPA Walt Kero