Write a summary recommendation of one of the three policy options above to be presented to key Congressional decision-makers. Charts, graphs, etc. are allowed to help make your argument – not required.
1. Reduce tax expenditures tax law preferences
2. Eliminate interest deduction on corporate tax income remove bias toward debt-financing over equity-financing of investment
3. Neutralize treatment of corporate and non-corporate (pass-through) entities
And the four ( ) criteria most commonly used for policy evaluation:
1. Sufficiency federal deficit reducing
2. Efficiency either traditional or modern definitions
3. Equity both horizontal and vertical equity
4. Simplicity convenience
Assume:
Congress is voting to follow just one of the three policy paths above in order to begin fixing the broken business tax system.
Lawmakers are all aware that they must vote to follow only one course of action at this time.
They have the duel goals discussed in the PowerPoint presentation:
o Leveling the playing field for U.S. businesses
o Increasing the corporate tax base
They judge policy decisions using the criteria for evaluation above
Assignment:
Include how the option you are recommending meets (or fails to meet) each of the criteria for evaluation noted above.
Tips:
Starts with a summary of your recommendation and how it best meet the policy goals.
Analyze or “justify” your position succinctly using each of the four criteria for evaluation (see table for analysis).
Include discussion of the other two policy options, as wanted or needed, to support your argument for the one you chose.
