Violet Corporation, a C corporation in the 34% tax bracket, will be subject to the AMT this year. Armen, Violet's president, has heard that it can be advantageous to accelerate income and defer deductions into a tax year in which the taxpayer is subject to the AMT. He wonders about the logic of doing this since it would increase Violet's total Federal income tax liability. Armen does not expect Violet to be subject to the AMT next year, but Violet will remain in the 34% bracket.

Complete the following paragraph that will clarify this issue for Armen.

Violet's acceleration of income and deferral of deductions for a tax year in which the C corporation is subject to the AMT can be beneficial. Since Violet is subject to the AMT for the current year, any increase in net income is taxed at the _______?_______ % rate. If this same income is taxed next year, it would subject to the _________?__________ % rate.