Corporate Finance
The alternative minimum tax (AMT) is a supplemental income tax imposed by the federal government to ensure that individuals and corporations pay at least a minimum amount of tax, regardless of deductions or credits they may claim. It was designed to prevent high-income earners from significantly reducing their tax liability through loopholes in the tax code. The AMT operates under a different set of rules compared to the regular tax system, often affecting taxpayers who benefit from various exemptions and deductions.
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