(All TCOs) You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently under consideration by the committee. In particular, the committee asked you to reflect upon the following proposed changes and issues.

(I) The committee has proposed phasing out 351 of the tax code.

(II) The committee has considered separating the gift and estate tax systems from one unified system to two completely independent, separate systems.

(III) The committee has considered eliminating the built-in gains tax for S corporations.

The committee would like you to summarize your conclusions regarding the potential effectsboth good and badof these potential changes. In formulating your answer, discuss all of the possible tax and economic implications that you see arising from these transactions on all taxpayers. (Points : 40)