The Alternative Minimum Tax (AMT) on US corporations impleme…

The Alternative Minimum Tax (AMT) on US corporations implemented in 1986 tended to hit companies during recessions and after large capital investments, disincentivizing investment in plant and equipment. It was repealed as part of the 2017 TCJA due to these harmful effects and because it was costly for both taxpayers and the IRS to calculate and it raised little revenue.

Windfall profits taxes are justified on the theory that if a…

Windfall profits taxes are justified on the theory that if a business has already made an investment and is enjoying a greater return on the investment than originally expected, taxing the excess return will not have much impact on economic growth in the short term.