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Wrap-up Questions for Chapter 2

29 July, 2015 - 16:31
  1. What policies does a broad definition of “gross income” implement and how?
  2. What is the tax treatment of a return of capital? How does this treatment implement the principle that we tax income once?
  3. In determining whether a taxpayer should include certain forms of consumption in his/her gross income, why should it matter that taxpayer has no discretion in what it is he or she must consume (for example, a trip to Germany to view Volkswagon facilities)?
  4. The use of appreciated property to pay for something implements the principal that we tax all income once. How?
  5. What economic distortions result from the Code’s failure to tax imputed income?