The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure that taxpayers who claim certain deductions and credits still pay a minimum amount of tax.
Progressive taxation is a tax system where the tax rate increases as the taxable amount increases. This taxation method aims to distribute the tax burden more equitably, making wealthier individuals or entities pay a higher portion of their income or assets.
Regressive taxation refers to a tax system where the tax burden falls more heavily on those with lower incomes compared to those with higher incomes. This is in direct contrast to progressive and proportional taxation systems.
