The alternative minimum tax is designed to ensure that individuals with many deductions and tax-shelter investments are paying their fair share of taxes.

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The alternative minimum tax was created specifically to apply to high-income earners who have many tax deductions and use tax-shelter investments to lower their tax liability. These individuals may otherwise pay a marginal tax rate that is significantly lower than their actual income. The AMT helps to ensure that these individuals still pay a certain minimum amount of taxes.

The Alternative Minimum Tax Is Designed to Ensure That Individuals