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Teaching Resources
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Cyberproblems & Solutions
The Design of the Tax System
- Do you agree with this critique of the Flat Tax?
The article argues the flat tax will not raise economic growth, will require
higher taxes on the middle class and higher budget deficits to pay for the
reduction of taxes for the wealthy, is not significantly simpler for most
people, and will hurt groups particularly dependent on deductions. This could
be the basis of an illuminating classroom discussion on the difficulties
inherent in tax reform.
- How long does it take taxpayers to prepare their tax returns?
Access the "Retrieve Forms and Instructions" page at the United States Internal Revenue Service site. Find the instructions for preparing Form 1040 and the section where the IRS gives its estimates of how long it takes to prepare a return (about page 7 in the instruction book). Is this time part of the deadweight loss of taxation? Is this time all there is of the deadweight loss of taxation? How would you determine the economic value of the time spent preparing tax returns? Does it make any difference if people fill out their tax forms during the evening or on weekends? Explain.
The problem already explains how to find the information needed although the
search itself may be a bit tedious. The information and questions provide the
basis for an interesting classroom discussion or written assignment.
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