Tracy Coenen appeared on CNBC’s “On the Money” to give her expert opinion on the Alternative Minimum Tax provision in the “bailout bill.”

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One of the provisions in the bailout bill was a “fix” for 2008 for the Alternative Minimum Tax (AMT). The AMT was created in 1970 to make sure that high-income individuals paid income taxes, even if they had lots of deductions. In its first year, only 19,000 taxpayers paid AMT.

The problem is that the numbers in the law haven’t been indexed for inflation, and millions are now paying this punitive tax. What was once meant to hit only high income earnings now will hit middle class Americans unless lawmakers change the law.

Watch the video for the viewer’s question and my expert opinion.

The above information should not be construed as tax advice. Each situation is different, and you should discuss your particular situation with a qualified tax professional.