Thomas N. Rawlins - Page 6

                                        - 6 -                                         
          The AMT would "ensure that high-income individuals and                      
          corporations pay at least a minimum rate of tax on their tax                
          preferences".  S. Rept. 94-938 (1976), 1976-3 C.B. (Vol. 3) 49,             
          147.  Such a goal is a legitimate governmental end.  Okin v.                
          Commissioner, supra at 1342.  Tax Reform Act of 1976, Pub. L. 94-           
          455, sec. 301(c)(1)(A), 90 Stat. 1520, designated as a tax                  
          preference a portion of an individual's "excess itemized                    
          deductions", including miscellaneous itemized deductions.  See              
          former secs. 57(a)(1), (b).2  This provision was designed "to               
          prevent high-income people from using itemized deductions to                
          avoid all tax liability."  S. Rept. 94-938, supra, 1976-3 C.B.              
          (Vol. 3) at 150; see H. Rept. 94-658 (1975), 1976-3 C.B. (Vol. 2)           
          695, 823.                                                                   
               Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA),              
          Pub. L. 97-248, sec. 201(a), 96 Stat. 411, introduced the concept           
          of AMTI, calculated by, among other adjustments, reducing                   
          adjusted gross income by "alternative tax itemized deductions".             
          Sec. 55(b), as amended by TEFRA sec. 201(a), Pub. L. 97-248, 96             
          Stat. 411.  Absent entirely from the alternative tax itemized               
          deductions were miscellaneous itemized deductions.  Sec. 55(e),             
          as amended by TEFRA sec. 201(a), Pub. L. 97-248, 96 Stat. 411.              
          In making revisions to the AMT, Congress had "one overriding                

          2  Currently miscellaneous itemized deductions are not classified           
          as tax preferences; rather, sec. 56(b) imposes "Adjustments                 
          Applicable to Individuals", including the disallowance of these             
          deductions.                                                                 




Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011