Tax Hike Targets Red Staters?

Income millionaires nationwide would be hit by the rate hikes in President Obama's proposed budget. Families at the $200,000-$400,000 level may escape if they live on the East or West Coasts, strongholds of Obama-leaning liberals. Many Red Staters with comparable incomes but lower expenses could see their taxes go up.

The New York Times explains: Many of the Californians and East Coasters have already left the regular income-tax system. They pay AMT, the Alternative Minimum Tax. And they'll still be paying it if the regular rates rise as proposed. The Times offers this example:


Could the proposed hike in capital gains tax, to 20%, also be rendered moot for many taxpayers because of the AMT? From personal experience, I wouldn't be surprised.