That's a pretty skewed definition of "fair". The top 1% of income earners (AGI > ~$365,000) pay as much tax as the bottom 95% of income earners, and repealing the AMT wouldn't change that by much. Over 40 million of the 130 million tax filers paid no tax or got money back without paying anything via credits.

I disagree. When the AMT was first passed in 1969, their were less than 200 taxpayers that qualified. That was before various tax acts (e.g. 1986) closed loopholes or phased out deductions.

I think the market is doing exactly what the hybrid incentives were meant to do, but as long as the incentives are there and we're driving behavior via tax policy, the credits should apply for the significant number of people covered by the AMT. After all, the objective was to get more people to buy a hybrid, right? If the objective is to only have the bottom 2/3 of income earners driving fuel efficient cars, then by all means let the AMT wipe out the hybrid credit.