The Alternative Minimum Tax (AMT) was passed by Democrats and the fiscal liberal called Nixon in 1969 to "tax the rich". It was created because congress didn't want to fix the bureaucratic tax code which allowed so many loopholes especially for those who could afford competent CPAs and tax lawyers. Instead they added a whole bunch of extra rules for a parallel tax system which denied many ways that the rich were using to avoid paying taxes. Not that it really mattered because it only added to the complexity of the tax system and the rich just found other loopholes. The first major mistake that shortsighted fiscal liberals made was to make AMT rules to make it affect only high income earners not take inflation into account. As a result, those who are considered rich in 1969 are now increasingly those in the middle class, and because of the complexity of the AMT rules, it could actually affect anyone regardless of how much they make. What has come back to bite the Democrats in their own butt has been the AMT removal of deductions like state and local taxes. Guess which states have higher state and local taxes? Right. Democratic states with their greater ideas of income redistribution and greater welfare and entitlement provisions require far greater taxes, so they end up taking up the greater burden of the AMT than red states. This is just one example of how shortsighted liberals with their ideas of a socialist/communist state taking care of the people ends up hurting
the people far more in the long run.