In the first chapter of your tax accounting textbook, we discussed three different approaches to taxation: Progressive, Proportional and Regressive tax structures. There is a logic behind each type of structure and each has its strengths and weaknesses. Our current Federal Income Tax Structure is based on a Progressive tax structure.

Imagine that you have been placed on a committee to recommend to the federal government the taxation structure that you believe would ultimately be the best approach to balance and achieve the following two objectives: 1. Develop and fuel a strong and growing economy while also 2. Achieving strong tax receipts for the government to accomplish their role in developing infrastructure, defending the country, and advancing the welfare of its citizenry. The goal here is not to critique whether the government has a right to tax, or whether you think the government is currently doing a good job in its approach to taxation. It is for you to identify and advocate for a particular taxing structure that would achieve the above-mentioned objectives. Please identify which approach you would recommend and explain the rationale for making that recommendation.