So I went back, I looked up the AMT, the Alternative Minimum Tax. The Alternative Minimum Tax was part of the general Tax Reform Act of 1969. Here’s a general explanation of the Tax Reform Act of 1969. H.R. 13270. I want you to listen to this, those of you who heard the Buffett Rule proposed today. The Buffett Rule is what? Well, there’s secretaries out there paying as much as their gazillionaire bosses, different tax rates, not fair. Fine.
From the general explanation of the Tax Reform Act of 1969 which gave us the Alternative Minimum Tax: “Many individuals with high incomes who could benefit from these provisions paid lower effective rates of tax than many individuals with modest incomes. In extreme cases, individuals enjoyed large economic incomes without paying any tax at all. This was true for example in the case of 154 returns in 1966 with adjusted gross incomes of $200,000 a year (apart from those with income exclusions which do not show on the returns filed).” The AMT was created, folks, the bottom line here, because in 1966, 154 people didn’t pay taxes. And it’s not that they violated the law. It worked out that they didn’t owe any taxes, 154 people, 1966. I was 15 years old. So they created the Alternative Minimum Tax to make sure that these 154 didn’t get away with that again. I’m dead serious.