An easy question for econo-wonks.
The U.S. House of Representatives just passed a bill that should hold back the Alternative Minimum tax for next year, assuming that it passes the Senate largely intact and gets signed.
This reminds me of a question that I've had for a while. The big issue with the Alternative Minimum Tax is that it's trigger income level is $150,000, and that number has never been adjusted for inflation since it was set. (I'm vastly oversimplifying what is a predictably complicated tax issue. You should consult an accountant for actual tax advice, especially if you make more than $150k per year.)
So, what would be the trigger value if inflation were to be applied to that $150,000 number? What would it be today, given a starting year of 1986? This calculation is probably a breeze for first-year economics students. Use whatever methodology seems to fit best.
This reminds me of a question that I've had for a while. The big issue with the Alternative Minimum Tax is that it's trigger income level is $150,000, and that number has never been adjusted for inflation since it was set. (I'm vastly oversimplifying what is a predictably complicated tax issue. You should consult an accountant for actual tax advice, especially if you make more than $150k per year.)
So, what would be the trigger value if inflation were to be applied to that $150,000 number? What would it be today, given a starting year of 1986? This calculation is probably a breeze for first-year economics students. Use whatever methodology seems to fit best.