U.S. Government: Democracy in Action 2002 U.S. Government: Democracy in Action

Glencoe Social Studies U.S. Government: Democracy in Action
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Student Web Activities
 Chapter 20: Taxing and Spending
 "Tax Reform"

Introduction
In this chapter you have studied how the federal government raises and handles money. The single largest source of income for the government is the individual income tax. If you have a job, you will notice on your paycheck stub that part of your earnings is deducted as taxes to be sent to the government. Many people are unhappy with the current tax system, and there have been various proposals made to reform the system. In this activity you will take a closer look at some of those ideas.

Destination Title: Tax Policy: Ripe for Reform?

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Directions
Start at the Washington Post's Special Report on Tax Policy Web site.

  • Scroll down the page, taking notes as you read.

After you have read through the information, answer the following questions.

1. What is the difference between progressive and regressive taxation?


2. What income range of taxpayers contributes the largest percentage of total revenue? What income range contributes the smallest percentage?


3. Explain the flat tax proposal. What are its advantages and disadvantages?


4. Besides the flat tax, other tax reform proposals include the national sales tax, the value-added tax, and the 10-percent tax proposal. Do you think that any one of these is the solution to tax reform in America? If not, what do you think needs to be done to reform the tax system?


5. Choose the tax reform proposal you think would be most successful. Create an informational brochure that could be sent to taxpayers to convince them of the value of this reform. Use illustrations, and make sure to explain clearly the benefits of your chosen reform.


 

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