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The Federal Income Tax System and Tax Reform

1. Is there anything wrong with the current federal income tax system in the U.S.? If so, what?
2. What did President Bush hope to accomplish by appointing the Bipartisan Advisory Council on Tax Reform?
3. What did the Bipartisan Advisory Council on Tax Reform recommend?
4. What is the difference between progressive taxes and regressive taxes? Give examples of each.
5. What are the mechanics of a flat tax and how does a flat tax differ from the current federal income tax system in the U.S.?

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ANSWERS

Question 1
There is actually something wrong with the current federal income tax system in the United States, as far as I am concerned that is. One thing that is wrong is that the system, specifically the withholding tax feature, was designed for those employed in businesses. This means that self employed individuals are not covered. Hence, self employed individual has no incentive to file income tax returns or if they do, to file the correct amount of income since there is no check mechanism on how much they really earned for a given period.

Question 2
I suppose that President Bush, when he appointed a ...

Solution Summary

This solution discusses U.S. tax policies.

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