Answer the following questions
1- 1- Dependency Exemptions
Discuss the requirements to be able to claim someone as your dependent. More important, discuss WHY each of these requirements exist. Why have them? Would you add any additional ones, or delete any?
2- 2- Flat Tax
Have you heard about proposals for a “flat tax”? The idea is to have our federal income tax be extremely simplified, with almost all income being taxed, and almost no deductions allowed; however, the tax would be a much lower percentage, like maybe a 15% across the board tax, and with everyone paying the same tax rate. They would also exempt a large part of income from any tax, so that the first $25,000 income per family for example would be tax free. Thus, a family making only $50,000 has half its income tax free, but a wealthy family making $200,000 has 88% of its income subject to tax. Some argue it still benefits the rich, others argue it does not, and that a flat tax would give much less incentive to cheat on taxes or hide income since the tax rate is only 15%. Do a little online research on the flat tax (there’s plenty of comment on the internet) and discuss what you think of it.
