[Verse 1]
When regular tax seems too light for your wealth
The government's backup plan protects itself
Twenty-six percent for singles, twenty-eight for couples married
Alternative minimum tax gets your burden carried
Start with taxable income, then we reconstruct
Add back preferences that regular tax has struck
[Chorus]
A-M-T calculation, add the preferences back
ISO bargain elements, depreciation track
Private activity bonds and depletion allowance too
Subtract exemption amounts, then compare the two
Pay the higher burden, that's the A-M-T way
Parallel tax system makes the wealthy pay
[Verse 2]
Incentive stock options create the biggest trap
Exercise price versus market leaves a preference gap
Accelerated depreciation must be reconciled
Real estate and equipment, recalculated mild
Straight-line method required, no bonus first-year write
These adjustments often give taxpayers quite a fright
[Chorus]
A-M-T calculation, add the preferences back
ISO bargain elements, depreciation track
Private activity bonds and depletion allowance too
Subtract exemption amounts, then compare the two
Pay the higher burden, that's the A-M-T way
Parallel tax system makes the wealthy pay
[Bridge]
Exemption phases out as income climbs the scale
Singles lose it faster, married couples' threshold's frail
Credit carries forward when A-M-T exceeds
Regular tax liability in future years it feeds
Timing strategies matter, spread the income flow
Bunch deductions carefully, make preferences low
[Verse 3]
Municipal bond interest if it's private activity
Medical expenses need seven-point-five reality
Miscellaneous deductions vanish in A-M-T world
State and local taxes, their benefits are furled
Calculate both systems, software tracks each line
Whichever tax is higher, that burden will be thine
[Chorus]
A-M-T calculation, add the preferences back
ISO bargain elements, depreciation track
Private activity bonds and depletion allowance too
Subtract exemption amounts, then compare the two
Pay the higher burden, that's the A-M-T way
Parallel tax system makes the wealthy pay
[Outro]
High-income earners face this second calculation
A-M-T ensures their fair participation