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Tax Law:

Define the objectives of modern income tax statutes. (at least 3)
Compare and contrast GAAP and tax accounting. Explain why they are different. (at least 3)
Differentiate between tax avoidance and tax evasion.
Research your readings, the Internet, and other resources to support your argument.

about 400 words, three references

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Define the objectives of modern income tax statutes. (at least 3)
The objectives of modern income tax statutes are to first raise revenues for the government, second, to bring about a more equitable distribution of income and wealth, and the third objective is to support the fiscal policy of the government.
First, the government requires taxation for revenues. These revenues are used for financing expenditure on the operation of the government, public works, social engineering, war expenses, enforcement of law and order, protection of property, enforcement of contracts, legal tender, and roads. Also, the government uses revenues collected from taxes to finance projects related to utilities like waste disposal, energy generation and transmission, and water supply. Social and welfare expenditure by the government is also financed by taxation. These revenues also finance unemployment benefits (2).
Second, the objective of modern income tax statutes is to reduce the inequality between the rich and the poor through the instrument of progressive taxation. Progressive taxes try to keep the incidence of taxes low on those that have a lower ability to pay and keep a higher incidence on those that have a higher income or wealth. Modern income tax statutes required people with higher income pay a higher percentage of that income as taxes. Those that have lower incomes are required to pay a lower percentage. It is believed that if the percent of tax of each dollar increases as the total income increases, it leads to a more equitable distribution of income in the country.
Third, the objective of modern income tax statutes is to support the Fiscal policy of the government. Economists believe that by changing the level and composition of taxation, government can affect the economy by changing the aggregate demand. This depends on the stance taken by the government. If the government spending is equal to the tax revenue there is a neutral ...

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