Captain Indignant has an interesting post in which he demonstrates that states that voted for Al Gore in 2000 had higher state income taxes than states that voted for George W. Bush. Of the nine states with no state income tax, eight went to Bush.



If, as expected, the 2001 tax reform act ends up subjecting many more taxpayers to the Alternative Minimum Tax in the future, "blue-state voters will owe more federal tax than red-state voters with identical incomes."



I'm not sure what this means politically for the future of the 2001 act (it's set to expire in 2011, unless Congress makes it permanent). Seems like a pretty easy solution to this disparity would be to make state income tax payments deductible from income under the AMT, as they currently are under the regular income tax. That, or index the AMT for inflation so more taxpayers aren't pushed into paying it (and calculating it) in the first place.
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