Alternative Minimum Tax: The Non-partisan California Killer.

How do you start a rational conversation in Washington? Each year Democrats and Republicans agree on minor amendments to the AMT. But, none of the amendments address the fundamental effect the AMT has on California. Put simply, California sends over $100 billion more to Washington every year than the Federal government sends to California. That is enough money to fund the entire State budget. Wonder why Californians feel broke?

CAIVP is looking for ways to help fuel this "Start-Up". It's a conversation California can't afford not to have.

The "Stealth" Tax

The CAIVP has been reviewing and following the effects that the "stealth tax" has on millions of middle-class taxpayers in high-cost states, especially California. As for now, the American middle-class, especially in California, can for once be clearly defined: a growing base of people stuck in the middle, between two tax systems increasingly at odds.

Among some of the inequities of the AMT, the AMT does not index for inflation and now is estimated to affect nearly 15% of households with incomes between $75,000 and $100,000, up from only 3% in 2000. The percentage has been and will continue to increase quickly over the coming years if indexing for inflation is not allowed.

The CAIVP will continue to be in communication with state and federal elected officials to advocate for immediate changes in the federal tax laws to protect middle-income taxpayers. Attention has been focused on the AMT as the new leadership in Congress took control in January.