1. Chapter 18 You are interested in estimating the effects of tax breaks on the level of charitable contribution. How could observing changes over time in tax rates & associated charitable contribution levels help you to distinguish between marginal & inframarginal effects of the tax break? Are there provisions in either the Senate or House bill that may impact the level of giving by certain taxpayers?

2. Chapter 20. What is the theoretical justification for the Laffer curve? Basing your view on the empirical evidence described in the text, is the approach the Federal government currently regarding tax reform the best one for the country at this time? Support your answer.

3. Chapter 21 Congress proposes reducing the tax exemption for children in married families where only one parent works outside the home. Why would this proposal improved equity, from a Haig-Simmons perspective?

4. Chapter 22 Gale and Scholz (1994) estimate that increasing the contribution limits for IRAs would have little effect on the overall rates of savings. Why do you think this might be the case? Are there any changes being proposed as part of tax reform relating to IRAs?

5. Chapter 23 Why does the property tax, as implemented in this country, provide a disincentive for property owners to improve their property? How would a land tax alter these incentives?