Assignment : Reforming the U.S. Tax Code

Due Week 7 and worth 280 points

Reforming the U.S. tax code to eliminate tax credits and loopholes has been a frequent topic of discussion. Some political opponents argue that the law is too complex and the tax structure should be simplified. In a recent article taken from the Washington Post, the U.S. Senate’s chief tax writers propose scraping the entire code and starting from scratch in their push for tax reform. The article further states that new tax provisions should (1) help grow the economy, (2) make the tax code fairer, and (3) effectively promote other important policy objectives. These objectives coincide with the goals of National Commission on Fiscal Responsibility and Reform appointed by President Obama to address the U.S.’s fiscal challenges. Research at least four (4) recent articles, within the last three (3) years, related to this issue.

Write a four (4)pages paper in which you:

1. Take a position on whether or not a flat tax would be beneficial to all Americans. Provide support for your rationale.

2. Discuss the primary pros and cons of imposing lower tax rates on lower income earners and higher taxes on the higher income earners. Provide support for your rationale.

3. Based upon the support you provided in Question 2, evaluate the impact that each of the options you discussed would have on the federal deficit, and make your recommendation as to which option you favor. Provide a rationale for your response.

4. Evaluate at least two (2) of the major effects that an overhaul of the tax code would have on CPAs and other paid tax preparers, recommending a strategy to minimize the impact of the overhaul. Provide specific examples.

5. Determine which option would personally impact you and whether you are in favor of the flat tax or a progressive tax structure. Provide support for your rationale.

6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

 Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

 Examine the types of taxes imposed at the federal, state, and local levels; the federal tax formula; and the rules for arriving at personal and dependency exemptions.

Analyze the concepts of gross income and distinguish between the economic, accounting, and tax concepts of gross income and strategies to minimize gross income, maximize deductions, and minimize disallowance of deductions.

Use technology and information resources to research issues in federal taxation.

 Write clearly and concisely about federal taxation using proper writing mechanics