2. Provide an example of a tax rule designed to motivate a socially desirable activity that also motivates transactions that reduce a taxpayer’s tax liabilities but serve no social purpose.  3....

2. Provide an example of a tax rule designed to motivate a socially desirable activity that also motivates transactions that reduce a taxpayer’s tax liabilities but serve no social purpose.

 3. Outline the path of a tax bill through Congress from proposal to passage. Why might a final tax bill differ from the original proposal?

4. Why might Congress and the Treasury avoid drafting tax rules that are very specific? What costs would such rules impose on the Internal Revenue Service? What benefits might they bestow on certain taxpayers?

 5. How do such judicial doctrines as the economic-substance, substance-over-form, and business-purpose doctrines affect taxpayer behaviour? Is it socially beneficial to have such doctrines?