1. What are the sources and causes of complexity in our tax system? Which, if any, of these causes are correctable? 2. Why do the tax laws sometimes discriminate against related-party contracts? Is...

1. What are the sources and causes of complexity in our tax system? Which, if any, of these causes are correctable?

2. Why do the tax laws sometimes discriminate against related-party contracts? Is this always in society’s best interest?

3. What incentives exist for taxpayers to shift income from one party to another? Are there costs associated with such income shifting? Give examples of such costs in a family-planning situation. How would the elimination of the assignment-of-income doctrine affect the costs of shifting income? What could taxpayers do to ease these costs?