Alternative Minimum Tax: An Overview of Its Rationale and Impact on Individual Taxpayers

Open Access

Abstract

A letter report issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO provided information on the alternative minimum tax (AMT) system, focusing on: (1) the rationale for establishing AMT; (2) how AMT affects taxpayers' tax liability; (3) the expected increase in AMT coverage and additional tax liability and the major reasons for the increase; and (4) the impact of the projected increase in AMT coverage on taxpayers' compliance burden and economic incentives and on the distribution of the tax burden."