minimum tax
Lowest required payment
A minimum tax is a floor on tax liability, ensuring that individuals or corporations pay at least a certain amount regardless of deductions, credits, or other provisions that might otherwise reduce their bill to zero.
The alternative minimum tax (AMT) requires taxpayers to calculate liability twice and pay whichever amount is higher.
Minimum taxes target those who benefit most from tax breaks: The new corporate minimum tax affects companies that report large profits but pay little in federal taxes.
- floorIndoor walking surface
- thresholdPoint of beginning
- baselineStandard for comparison
- exemptionRelease from requirement
- AMTAbbreviated sum total
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