Faculty Publications

Title

Tax policy and planning implications of hidden taxes: Effective marginal tax rate exercises

Document Type

Article

Journal/Book/Conference Title

Journal of Accounting Education

Volume

19

Issue

1

First Page

63

Last Page

74

Abstract

Hidden taxes in the form of floors and phaseouts are prevalent in the current US tax system and can have a considerable impact on the marginal tax rate faced by the taxpayer. It is important that future tax professionals be familiar with the theoretical and practical implications of hidden taxes. This paper provides a series of classroom exercises to illustrate the impact that hidden taxes can have on marginal tax rates. Information for incorporating this material into an introductory tax course is also provided. The exercises help inform students about the impact of specific tax provisions on marginal tax rates and business and investment decisions, while also giving instructors an opportunity to discuss the tax policy considerations that lead to implementation of these provisions. © 2001 Elsevier Science Ltd.

Original Publication Date

3-1-2001

DOI of published version

10.1016/S0748-5751(01)00008-2

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