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Informal term for the zone of alternative minimum tax (AMT) income after the AMT income exemption amount is fully phased out. Your AMT marginal rate then drops back to 28%, while your effective rate could have been as high as 35% when the exemption amount was phasing out. In the "sweet spot," your rate stays at 28% until your income gets high enough to put you back into the ordinary tax system, when you pay the top ordinary income tax rate of 37%.
For more on this concept in relation to ISO exercises, see an article elsewhere on this website.
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