I propose an AMT of a different stripe:
"Absolute Maximum Tax" - no special write-offs, deductions, or any other BS... the only exceptions would be:
- zero federal tax for the remainder of his life for any veteran who is rendered with a 20% or greater disability as a result of combat regardless of rank, OR for any retired enlisted soldier who has served over 20 years in the US military, OR against the death benefits of any military member, police officer or firefighter killed in the line of duty.
And no tax brackets, no VAT, no "catch-all minimum tax" such as the current AMT Congress has to vote on each year to keep from strangling most middle-class Americans.
Tax is capped at 10% of absolute gross income, with the all taxes included (FICA/SS/Medicare/State/Local/Property/School taxes, all combined not to exceed 10% of total gross income.
For earners making under $80,000/year, there would be no federal income tax (and that would be indexed to inflation) but state and local taxes still could not exceed 10% of absolute total income.
States and localities could set their own minimum barriers of income for taxation.
This way, the guy making $10,000 a year would pay only such local and state taxes as his state and locality imposes, not to exceed $1,000.
The guy making $79,999 would only pay state/local taxes up to $7,999.
The "rich" guy making $250,000 would pay no more than $25,000 to be divided to the states and localities first, and the remainder going to the Federal government.
The truly rich guy making $10,000,000 would pay no more than $1,000,000, split out to state and local first, and then the rest to federal.