Will Bush’s tax-reform plan recommend getting rid of the Alternative Minimum Tax in return for getting rid of state and local tax deductions? I’d like to get rid of those deductions, which probably result in state governments’ being bigger than they otherwise would be. But I’ve been leery of actually moving against them–Reagan had his head handed to him when he tried it. But maybe the fact that the AMT hits the same places will make it possible as a deal. On the other hand, how much gain do New York state taxpayers get in seeing one tax go down and another go up? The politics still seem dicey, but maybe worth it if enough high-tax-state lawmakers buy in early.

If this ends up happening, it will be a follow-up benefit of the Bush tax cuts. They directed attention to the AMT, and then, perhaps, made possible a reform of it.