1. Against an ideal tax policy, what is the common drawback of both the personal income tax and sales tax design in this country? And what is the consequence of this drawback?
2. Student loan interest of up to $2,500 can be deducted (or adjusted) from your gross income to arrive at your adjusted gross income. Why does the federal government make this an adjustment rather than a deduction that can be itemized? Whether adjustment or itemized deduction, why would the federal government have this adjustable/deductible expense in the tax return anyway?
3. Every year in October, the Internal Revenue Service will announce how much individuals can contribute to their retirement accounts, whether 401(k), 403(b), individual retirement account, or a few other accounts. Many state governments pay a lot of attention to this announcement. Why are they so interested in this announcement? What states might not be interested in such an announcement and why?
I have uploaded the course book and the class notes to the file.
Please use them if needed


