In Deciding Whether to Enact the Alternative Minimum Tax, Congress

question 59

True/False

In deciding whether to enact the alternative minimum tax, Congress was concerned about the inequity that resulted when taxpayers with substantial economic incomes could avoid paying regular income tax.

---

Definitions:

Price Appreciation

The increase in value of an asset or investment over time.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).

Dividends

Payments made to shareholders out of a corporation's earnings, typically distributed regularly (e.g., quarterly).

Four-figure Accuracy

A level of precision in numerical information or calculations that is rounded to or expressed in thousands.