3 Discussion 2

3 Discussion 2

the US basically has two tax systems. Do you think that we should get rid of AMT and just have one tax system for all people that is a merger of the rules for AMT and TMT? Why or why not?

Provide specific details to support your opinion in your response.

Solution Preview

The Alternative minimum tax is an income tax system that was introduced by the federal government to ensure that wealthy taxpayers do not avoid the payment of income tax. Under the AMT C corporations, high net individuals, trusts and estates are subject to the tax. When it comes to foreigners, they are only subjected to the tax if they have an income connected to a business in the country.

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