"The Democrat tax hike plan restores the AMT yet leaves the SALT cap in place. The Tax Cuts and Jobs Act law all but eliminated the alternative minimum tax (AMT) for 4.4 million families. These tax households--mostly six figure mass affluent types living in expensive blue cities and suburbs--used to have to calculate their taxes two ways, and pay the higher (that is, AMT) figure. One of the things they had to do in that calculation was disallow their state and local tax (SALT) deduction. So by being in the AMT, they got no SALT deduction at all.""The new tax law restores the SALT deduction for these families, but caps it at $10,000.""The Democrat plan is the worst of all worlds for these taxpayers: their SALT deduction is still capped at $10,000 (if they somehow remain in the regular tax system) and the AMT is fully restored (wiping out their SALT if they are in the AMT system). Either way, they are probably worse off than today.""There is no doubt that a former AMT taxpaying family from a blue area would rather be under the new tax law than under the Democrat tax plan.""We're already starting to see some blue states chafing under the SALT cap. Imagine what they will do if they have to labor under the SALT cap and a fully restored AMT."
Budget and Spending Taxes