Great comments, leading up to that one, on this post from yesterday.
UPDATE: In the twenty minutes since posting that I figured out my AMT, and Turbotax would have spared me from having to feel very bad about this, I suppose. I feel bad about the federal tax for having the AMT and bad about the state taxes for being so high in the first place and for being the reason I owe so much on the AMT.
Rationally, I admit that it isn't fair for people in states that charge high taxes to get away with contributing less to the federal effort. Why should people in low-taxing states, deprived of the benefits of the local services more taxes would fund, have to pay a larger portion of the costs of the federal government?
Rationally, I know my real problem should be with the state taxes, yet the feds are irking me with their complicated forms. In which case, I really ought to use Turbotax, not only to avoid the aggravation of witnessing the AMT grinding out the extra thousands, but so that I won't irrationally blame the federal government for doing something that is actually fair. Or am I losing my mind?
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2 comments:
Mark: I am part of the democratic process here in Wisconsin and capable of having my share of the effect on legislative outcomes here. In which case, I am getting what I deserve.
Richard: Marginal rates on what? Isn't the point just that I'm losing the ability to deduct things? My posts suggests it is fair to deprive me of these deductions.
Popaghanda: always nice to hear from alumni and their relations. Not sure if I'm actually really fighting anything. I thought I was kind of knuckling under.
The cumbersome part of the forms is filling out your taxes twice, in order to see which is more. The AMT itself is less complicated than the regular taxes.
Having certain deductions phase out at a certain income rate raises marginal tax rates at those income. Cutting taxes for people who make below those amounts means that the tax rate suddenly jumps for those people who make right over the phase-in amount.
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