"The alternative minimum tax was designed to prevent the very wealthiest Americans from overusing certain tax benefits to avoid most of their tax burden"

The alternative minimum tax (AMT) was produced to guarantee that the wealthiest Americans pay their fair share of taxes. It was created to prevent them from taking advantage of particular tax benefits to reduce their tax burden. The AMT needs taxpayers to determine their taxes twice, as soon as under the routine tax system and once again under the AMT system. If the AMT estimation results in a higher tax liability, the taxpayer needs to pay the greater quantity. This makes sure that the wealthiest Americans can not utilize reductions and credits to reduce their tax liability to a quantity lower than what is thought about reasonable. The AMT is an essential tool in the effort to ensure that everybody pays their reasonable share of taxes.