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The original goal of the alternative minimum tax was to make sure that it would not be possible for anyone to avoid all income tax quiz let------False.
What was the original purpose of the alternative minimum tax?
The AMT was originally designed to tax high-income taxpayers who used the regular tax system to pay little or no tax. Due to inflation and cuts in ordinary tax rates, many middle income taxpayers began to pay the AMT.
Who owes alternative minimum tax?
The AMT ensures that people in high-income brackets pay their fair share in taxes. The tax does not include most deductions to reduce taxable income. AMT tax rates are 26% or 28%, depending on where your income falls in the AMT threshold.
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