- What is the relationship between depreciation and basis? Why does the relationship have to be what it is? Feel free to state your answer in Haig-Simons terms.
- This chapter has offered three different tax treatments of expenses. What are they? What are the rationales for adopting any one of them in a given case?
- We tax net income? What economic distortions would occur if we taxed gross receipts?
- What economic distortions occur if we accelerate depreciation allowances? – if we give deductions to certain activities when they are profitable, for example § 199?
- Do depletion allowances encourage (too much) exploitation of natural resources?
Wrap-Up Questions for Chapter 6
- Front Matter
- Body Matter
- Back Matter