Tax reform and compliance(25 points total)

a.What should be the goals of tax reform?(5 points)

b.Consider a decrease in tax rate, what are the effects on tax revenue?(10 points)

c.Describe the potential impact of cutting funding for IRS on tax compliance.(5 points)

d.Describe the potential impact of increasing penalties for tax noncompliance on the amount of nonreported income.(5 points)