RUSH: Wendy in Fair Oaks, California, suburban Sacramento, nice to have you with us.
CALLER: Thank you very much.
RUSH: You bet.
CALLER: I have been really, really angry ever since you talked about the highest tax receipts ever going to the government in April.
CALLER: And my husband and I are two of the people that helped have record receipts because of AMT. My husband and I are not wealthy. We work hard, we’re workers. And the liberal media shouting that these rich people don’t pay taxes is a joke. I feel so victimized by our government, and so powerless, you could make a revolutionary out of me, and I’m a very mild person.
RUSH: I can hear the revolutionary intonations in your voice. I recognize the Fair Oaks accent.
CALLER: Oh, good. Yes.
RUSH: Now, this story, Wendy, you’re right. I mean, the Drive-Bys try to make it sound like the rich aren’t paying their fair share and they’re not paying enough because they’ve got too much left over after they pay, it’s just not right. Now this story that’s reported, US tax receipts from individuals hit a record one-day high of $48.7 billion on April 24th. And the analysis of this from the chief economist at Wrightson ICAP in Jersey City said, well, this reflects the fact that Americans in high income brackets had a very good year in 2006.
CALLER: And can I object?
RUSH: Well, of course because —
CALLER: What it means is they’re taking more money out of me because of AMT. They’re taking more money. They take higher — my capital gains tax is higher because of AMT. I paid an additional $8,000 because of AMT. It’s not about it being a good year, it’s about the government being able to take money from us worker bees.
RUSH: And the number of people that fall victim to the AMT — alternative minimum tax, rises every year.
RUSH: You know, there’s no longer a thing called bracket creep in income tax because they now index for inflation.
RUSH: But they don’t do that in the AMT and that’s why more and more people are falling into the trap of being caught. The alternative minimum tax was created whatever year, some years ago for a specific reason. There were 23 millionaires that didn’t pay any income tax in whatever year it was, and that news caused conniption fits out there. So the alternative minimum tax was devised in order to make sure that somebody, everybody paid something. It was a tax designed to get 23 families, 23 people. Now it’s lassoing hundreds of thousands, millions, and soon to be multiple millions, and there’s no mad dash to do anything about it because it does generate so much revenue to the federal treasury. By the way, if you’re concerned about this, Wendy, I’ll guarantee you one thing, not only is the AMT not going to change, but the Bush tax cuts are going to sunset, and the Democrats aren’t going to do anything about that if they get back in power in the White House. Elections matter, folks.