Refer to the Ethics & Equity information reflected on page 26-13 of the textbook. Prepare a discussion board post commenting on the current self-assessment system and any additional enforcement procedures. Your discussion will include references to outside information as necessary.

The United States is a large country of diverse taxpayers and businesses. Perhaps the only way the massive dollar amounts of Federal income taxes can be collected on a timely basis is through a self-assessment process, whereby the taxpayer is charged with disclosing a full picture of the tax years results and the corresponding computation of taxable income. But a system of self-assessment depends heavily on the honesty and integrity of the taxpayers and their ability to know and comply with the pertinent tax rules. A recent survey of taxpayer attitudes by the IRS Oversight Board revealed the results shown to the right. Given the results of this survey, do you think the current The self-assessment system is satisfactory. If not, should Congress create additional enforcement procedures to ensure taxpayer compliance? What sort of new reporting rules might be useful?

Why Do You Report and Pay Your Taxes Honestly? (more than one answer allowed)

Taxpayer Responses Taxpayers for Whom This Reason is Key (Percent) My own personal integrity 84%

A third party reported my information to the IRS (e.g., through a Form W2 or 1099), so I must match that amount in my tax form 35%

Fear of an audit 37%

My neighbors report and pay their taxes honestly, so I will too 19%

What Is an Acceptable Amount by Which to Cheat on Your Income Taxes?

Taxpayers Responding (Percent) Not at all 86%

A little here and a little there 7%

As much as possible 5%

Other answers 2%