“Today’s proposed repeal of the Alternative Minimum Tax by Trump has posed the question, should Australia think along the same lines?” asks Associate Professor Dale Boccabella from the UNSW Business School.
“The original purpose of the AMT was to prevent very wealthy Americans from using deductions and loopholes to skimp on their taxes. Maybe such a plan would work here?”
With the Federal Budget 2017 just a couple of weeks away, Dale Boccabella suggests that the Federal Treasurer should consider AMT plans here.
The decades-old tax law in the US, which was enacted to make sure the rich pay their fair share, has a set of rates and rules that are distinct from the regular tax code and apply to certain high-income earners, trusts, estates, and corporations.
Therefore, when corporations or individuals fall under the auspices of the AMT, their tax bills are figured out differently than those of ordinary taxpayers.
Dale Boccabella has looked at the AMT plans, and he can discuss all the implications associated with the AMT, what it is, and ask if Australia should have an AMT.
“Far from abolishing an AMT, maybe Australia should have one,” he suggests. “The point of the AMT is to make sure wealthy Americans who earn above a certain amount, pay a flat minimum tax rate. The AMT isn’t popular in the US however, as it now targets people in the upper-middle class, not the uber-rich, even if they could get away with paying zero or very little taxes in the regular system.”
For further comment call Dale Boccabella on 02 9385 3365, 0427 591208 or Email firstname.lastname@example.org
Media contact: Julian Lorkin: 02 9385 9887