1. Do you think that credits and other tax incentives actually cause companies to change economic behavior to utilize these tax provisions? Are they important to the economy?
2. Is the idea of an Alternative Minimum Tax (AMT) fair? Why or why not? Has the AMT worked in the manner in which it was originally intended?
(1) It's relative. If the tax credits and other incentives let the companies retain and reinvest more money than the cost they would incur to change the economic behavior, then most likely they would opt for a switch. Tax credits and other incentives are important for the economy since these are the controls that the government can use to regulate the economy. By steering the companies in the right direction they could make economy healthier and that's where tax credits and incentives as well as other factors come into play.
(2) The idea of the AMT is fair in its essence. However the way it's being implemented and used does not just address those that are extremely ...
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