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(ALL TCOs) You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently under consideration by the committee. In particular, the committee asked you to reflect upon the following proposed changes and issues.
(I) The committee has proposed phasing out the corporate alternate minimum tax (AMT).
(II) The committee has considered repealing the estate tax permanently, but it plans on retaining the gift tax.
(III) The committee is intrigued by the idea of eliminating the double taxation of corporate earnings. The members are, however, unsure which level of taxation should be eliminated.
The committee would like for you to summarize your conclusions regarding the potential effects-both good and bad-of these potential changes. In formulating your answer, please discuss all of the possible tax and economic implications that you see arising from these transactions on all taxpayers.
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