Final answer:
High-income individuals with significant deductions are most impacted by the Alternative Minimum Tax (AMT), as it is designed to ensure they pay at least a minimum amount of tax.
Step-by-step explanation:
The Alternative Minimum Tax (AMT) is designed to ensure that certain taxpayers pay a minimum amount of tax regardless of deductions, credits, and exemptions. It primarily affects high-income individuals with significant deductions, who might otherwise avoid paying tax. The AMT calculates an alternative tax amount, which these taxpayers must pay if it is higher than their regular tax liability.
Therefore, the correct answer is B) High-income individuals with significant deductions are the ones who get hit hardest by the AMT. Low-income individuals, corporations with minimal profits, and individuals without any taxable income are less likely to be affected by the AMT, as it does not apply to those without a significant regular tax liability or certain income thresholds.