Based on the discussion in chapter 1 in the textbook and your research throughout the course, evaluate how well each of these taxes meets Adam Smiths four requirements.

Income tax

Employment taxes

Sales taxes

Here is an answer form what I have found please rewrite to make more sense as to the question at hand. I just dont think it flows right I just want to make it better understood.

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a. Equality - A tax should be imposed based on the taxpayer's ability to pay.

b. Certainty - The taxpayer should be able to determine the amount of tax and how to make the required payment.

c. Convenience - The tax should be levied as close as possible to the time the taxpayer receives the amount subject to tax.

d. Economy - The cost of taxpayer compliance and administering the tax system should be small in relation to the revenue generated.

Adam Smith's four criteria for evaluating a tax are Equality, Certainty, Convenience, and Economy. The aspects of the income tax that promote each of the individual criteria are:

Equality - Progressive tax rates; the use of a standard deduction and exemption amounts have the effect of exempting low-income taxpayers from the tax; indexing of tax rates, standard deduction and exemption amounts are adjusted for inflation.

Certainty - The use of an annual accounting period and the consistent use of the same tax return due date.

Convenience - The use of a pay as you go system of collecting taxes is more convenient than collecting all taxes at one date. Taxpayers determine their own tax due in privacy.

Economy - The cost of running the IRS is a small percentage of the total tax collected.

Factors in the tax system that dilute Adam Smith's requirements:

Equality - Income exclusions and special deductions allow taxpayers with high incomes to pay taxes equivalent to those with lower incomes. The use of tax planning by higher income taxpayers also negates some of the equality of the system.

Certainty - The complexity of many of the tax law provisions and numerous changes in the tax law from year to year make proper calculation of the tax less certain.

Convenience - Some would contend that determining the amount of tax to be withheld is difficult for many people, making the pay as you go system less convenient.