Questions and Topics We Can Help You To Answer:
Paper Instructions:

Please answer Questions 1, 2 and 3. These questions are designed to be broad enough to permit more than one single right answer and reasoned disagreement with course material is always permitted.  Analysis and use of class materials count!  I want to know how you think and how you synthesize the course materials.

1.    Using examples from the course materials, explain this statement: “When policy makers decide to change the economy or society’s behavior, the tax code is usually their tool of choice.”  (hint: one big example is tax preferences) (30 points)

2.    Ippolitto argues that federal tax policy should be analyzed in the budget policy context emphasizing the relationship between 4 key factors: revenue, spending, deficits and debt. Using the course materials, explain how different presidential administrations have interpreted the relative importance of these four factors in formulating tax policy to influence economic growth and budgetary policy. Refer to at least three administrations in your answer.  (50 points)

3.    Using the materials in lecture 3 and the GAO Tax Expenditure Policy Evaluation Sheet, select any tax expenditure and asses the tax expenditure’s effectiveness. Make a recommendation about the merits of its continued inclusion in the tax expenditure budget. (20 points)