Problem 1: Our regular personal income tax system has tax rates that increase as a taxpayer's income increases. Our alternative tax system basically has a single rate. Discuss some of the policy reasons for having those sorts of rate systems.
Problem 2: Give two examples of how taxes are used to influence social policy.
Problem 3: Why was it necessary to integrate the estate tax and gift tax?
Problem 4: After an audit by the IRS, the agent proposes to increase the tax liability by $500,000. What alternatives does a taxpayer have?