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Politics : Bill Clinton Scandal - SANITY CHECK -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (12390)	11/2/1998 5:17:00 PM
From: Les H	Read Replies (2) \| Respond to of 67261

The phaseouts were started in 1991's first undoing of the simplified tax code of 1986, and expanded by Clinton in 1993. Hence, the last two Democratic Congresses were actually raising tax rates at the back end. Meanwhile, the kick-in for Alternative Minimum Tax (AMT) is fixed and in the next decade many people will get hit by this tax raising their tax rate above the rate specified in the tax tables. It also plays havoc with the so-called lower capital gains tax rates.

To: Lizzie Tudor who wrote (12390)	11/2/1998 5:24:00 PM
From: Peter O'Brien	Read Replies (1) \| Respond to of 67261

Michelle, these phaseouts are part of current law! So, they are not things that are being proposed, they are things that already exist. You can look them up in the standard IRS publications. Except for the Roth IRA (which you correctly point out is a new program passed in 1997), all of these phaseouts have existed for some time (at least 5 years, I think). However, when the new Roth IRA was passed last year, it was also implemented with a phaseout. Maybe you are misunderstanding what I mean by "phaseout"? I mean that, as part of the tax code, your ability to take advantage of certain deductions "phases out" as your income increases beyond a certain level. This effectively increases the marginal rate for people whose incomes are in the "phaseout" range.