AMT

Categories: Tax, Legal, ,

alternative minimum tax: in the United States, a way of calculating income tax that is intended to ensure that wealthy individuals, corporations, trusts, and estates pay at least some tax regardless of deductions, but that is increasingly targeting the middle class because the threshold was never indexed for inflation. This has turned the AMT into an important political issue, with the possibility that the threshold will either be raised substantially or the AMT eliminated altogether in future.