Chapter 20: Taxing and Spending "Tax Reform"

Introduction

In this chapter students have studied how the federal government raises and handles money. In this activity students will visit the Washington Post's special report on tax policy to examine some of the proposals to reform the tax system in the United States.

Lesson Description

Students will visit the Washington Post's Web site to learn more about the issue of tax reform in the United States. Students will read an overview of the issue, examine some of the proposals, and create a brochure explaining the advantages of a selected tax reform proposal.

Instructional Objectives

1. Students will be able to summarize several proposals for tax reform.
2. Students will be able to explain from what sources the federal government receives its revenues.

Student Web Activity Answers

1. A tax system is progressive if those with higher incomes pay a higher percentage of their incomes in taxes. A regressive tax forces the poor to pay an equal or higher percentage of their income in taxes than the rich.
2. Individuals in the income range of $25,000 to $100,000 contribute the largest percentage. People earning under $25,000 contribute the smallest percentage.
3. A flat tax would put every taxpayer in the same tax bracket, regardless of income. Its advantages are its simplicity and its elimination of tax loopholes and exemptions. Its main disadvantage is that it is inherently regressive.
4. Students' answers will vary.
5. Students' brochures will vary.