1. A major issue in recent presidential elections has been whether the income tax on high income earners should be increased. Can you think of any standard by which to determine the appropriate level of progressivity in the Code?

2. The more progressive the Code, the greater the upside-downness of deductions. How might this be a good thing? What would be the advantage of granting tax credits instead of deductions or exclusions?

3. What are phaseouts? Why would Congress enact them? How do they affect a taxpayers effective tax rate?