Assume Alans parents make gifts of $10,000 to him every year starting at age one, Alans parents are in the 35 percent income tax bracket, and Alan is now 15 years old and has $11,700 of interest income for 2018.

a. Calculate the tax on Alans interest income if his income is not included on his parents return.

b. Explain why the kiddie tax rules are in the law.