Chapter 1, Problem 22DQ

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

How are federal, state, and local income taxes collected by the government? Consider the cases of an employee and a self-employed taxpayer.

Can any nonrefundable credits, other than the foreign tax credit, reduce the regular income tax liability below the amount of the TMT? Explain.