Tis the season to be filing taxes, but the middle class isn’t so lucky, as according to Reuters: “Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a “patch” that limited the impact of the alternative minimum tax.” Strangely enough, Reuters withdrew the story minutes after it went live.
The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
[via Yahoo]
