Question

D Do you agree or disagree with the following statement:

“ The corporate AMT does not increase efficiency or improve fairness in any meaningful way. It nets little money for the government, imposes compliance costs that in some years are actually larger than collections, and encourages firms to cut back or shift their investments. The Congress’s bipartisan Joint Committee on Taxation was undoubtedly correct in recommending that it be repealed.”

Answer 1

Answer :

Supporters of the corporate AMT, whether they recognize the distortions and costs or not, argue that the tax improves fairness, discourages investment in tax preferred assets, and is necessary to prevent corporations from using tax shelters to eliminate their income tax liability. It is not absolute, however, that the AMT does improve fairness or limit the ability of corporations to avoid taxes. In any case, this tax is an extremely inefficient method of addressing the perceived problems. Much better would be to address policy concerns through the regular corporate income tax code and eliminate the complexity and inefficiencies associated with the corporate AMT.
In light of above discussion, it can be said that I agree with statement in the question about repealing of Corporate AMT.