Those earning a decent income, but live beyond their means and depend on an annual refund, will become (more) squeezed. Particularly those who a) dont know it's coming and b) don't have any funds available to pay the bill. With cash-out refi's off the table, many "homeowners" are simultaneously phucked...within the next couple of years.
Add that to the already knowns such as payment resets, higher property taxes, rising costs of everything else (despite "offical" inflation figures) and the outcome is inevitable.
From yahoo: Those hardest hit: married couples with kids who take a lot of the deductions and credits disallowed under AMT. The Tax Policy Center estimates that by 2010 nearly 90 percent of married couples with two or more children and an adjusted gross income between $75,000 and $100,000 will be subject to AMT.