By now, you're probably of the opinion that the distinction between separately stated and nonseparately stated income is one of the most confusing concepts that you've encountered this week. For Congress to come up with something this confusing, you know it must have had a good reason (or at least we'd like to think so!). Think about the concept for a moment. What is the broad tax policy behind separating these two categories of income? What is Congress trying to achieve? What problems does it prevent? What problems does it cause?