The alternative minimum tax (AMT) is a tax system that was created to ensure that high-income earners pay their fair share of taxes. It is a parallel tax system that operates alongside the regular income tax system. The AMT is designed to limit the amount of tax deductions that high-income earners can claim, which means that they pay a minimum amount of tax regardless of their deductions.
Definitions
The alternative minimum tax is a tax system that was created to ensure that high-income earners pay their fair share of taxes. It is a parallel tax system that operates alongside the regular income tax system. The AMT is designed to limit the amount of tax deductions that high-income earners can claim, which means that they pay a minimum amount of tax regardless of their deductions.
Origin
The alternative minimum tax was first introduced in 1969 as a way to ensure that high-income earners paid their fair share of taxes. The tax was created in response to concerns that some high-income earners were able to use tax deductions to avoid paying their fair share of taxes.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, the alternative minimum tax is “a federal tax that is designed to ensure that individuals and corporations pay a minimum amount of tax regardless of their deductions.”
According to the Oxford English Dictionary, the alternative minimum tax is “a tax system that operates alongside the regular income tax system and is designed to limit the amount of tax deductions that high-income earners can claim.”
Associations
The alternative minimum tax is often associated with high-income earners and corporations. It is designed to ensure that these individuals and entities pay their fair share of taxes and cannot use tax deductions to avoid paying taxes.
Synonyms
Synonyms for the alternative minimum tax include the minimum tax, the parallel tax system, and the AMT.
Antonyms
Antonyms for the alternative minimum tax include the regular income tax system and tax deductions.
The same root words
The alternative minimum tax does not have any root words.
Example Sentences
- High-income earners are subject to the alternative minimum tax.
- The alternative minimum tax is designed to ensure that high-income earners pay their fair share of taxes.
- The alternative minimum tax operates alongside the regular income tax system.
- The alternative minimum tax limits the amount of tax deductions that high-income earners can claim.
- The alternative minimum tax is a parallel tax system that was created in 1969.