ACG 3221 – Tax Policy Assignment
Due: January 24, 2024
Tax has often been used as a bargaining chip for political purposes. Prospective political
representatives create tax positions with the intent of persuading voters that their tax plan would
be the best for the voters and/or the country. Federal tax policy is created in Congress. The
House Ways and Means Committee of the US House of Representatives initially develops tax
legislation before it is brought to the House floor.
The 2020 presidential election led to many different proposed tax policies by presidential
candidates and members of Congress. The current administration has taken many of these
proposed policies into account and is in the process of crafting new tax legislation. The purpose
of this assignment is to gain a broader understanding of each policy, its viability, and how it
compares to the current tax policy. You will be assigned a policy and will examine the policy
objectively from either a position that supports the policy or one that opposes such policy. While
these views may not match your personal beliefs, they provide insight into the discussion
surrounding each policy. At a broad level, consider how the different policies are connected.
We will have an in-class discussion on the proposed tax policies. You are required to prepare and
participate in the discussion as informed tax professionals. Remember to utilize credible sources
for research purposes (i.e., no blatant political basis). Please provide a brief argument (1-2
pages) on your proposed tax policy.
You will find your assigned tax policy on the next page. The argument is to be completed on an individual basis and must be uploaded to Moodle
before the discussion. You must submit your assignment to receive attendance points (in
addition to attending class).
In class, we will create larger groups (with different tax perspectives) and discuss the merits of
each tax policy. Please remember that this exercise is not intended to be political
but rather an
academic learning opportunity. Please respect the opinions and statements of others.
Here are some questions to help formulate your argument of the proposed tax policy:
What are some arguments in support (in opposition) to the proposed policy?
How does the proposed tax policy impact capital assets (relative to ordinary assets),
facilitate the tax principles of equity, certainty, convenience of payment, economy of
collection (tax administration), and economic growth? (Please consider specific
provisions.) Consider special exceptions to the general tax treatment that may apply
under the new policy.
How are various stakeholder interests (investors, creditors, regulators,
industrial/professional concerns, business interests, etc.) impacted by the proposed
policy?
What are some of the weaknesses of the proposed tax policy? How could these
weaknesses be remedied?
What tax planning opportunities would (not) be available to taxpayers affected by the
proposed tax policy?
Would there be any ethical ramifications with the proposed tax policy?
How does your tax policy fit within the current administration’s larger policy proposal?
