One of the pieces of John McCain’s proposal to cut taxes for the middle class includes his desire to repeal the Alternative Minimum Tax or AMT.

Here’s a blurb from his plan about the proposed cut:

John McCain Will Cut Taxes For Middle Class Families. John McCain will permanently repeal the Alternative Minimum Tax (AMT) – a tax that will be paid nearly exclusively by 25 million middle class families. Repealing this onerous tax will save middle class families nearly $60 billion in a single year. Under McCain’s plan, a middle class family with children set to pay the AMT will save an average of over $2,700 – a real tax cut for working families.

Now I will grant that this particular part of the arcane set of edicts that is the United States tax code is flawed and needs to be fixed. The AMT is not tied to inflation, and therefore over time, it could reach into upper-middle and even some middle classes if not adjusted slightly.

But the way that the McCain flaunts this as a “middle” class tax cut is troubling.

a tax that will be paid nearly exclusively by 25 million middle class families

Great statement, except that more than half the AMT is by those with incomes in excess of $200,000 and nearly 90% of it is paid for by those with household incomes of $100,000 or more.

Middle class at $200,000 a year?

Median U.S. income in 2005 was a bit over $44,000. Let’s ask the folks making that if they would call $100,000 a year “middle class”.

Ladies and gentlemen, the McCain “middle class” tax cut.

Enjoy!

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