The Federal tax law is a result of several competing objectives that are in addition to the primary objective of raising revenue. Among these considerations are (1) Economic Considerations, (2) Social Considerations, (3) Equity [fairness] Considerations, and (4) Political Considerations. An example of an Economic Consideration that is separate and apart from just raising revenue would be:

1. A. Alleviating the effects of multiple taxation by giving tax rate reductions on the receipt of certain qualified dividends.
2. B. None of the above.
3. C. Congress using incentives such as immediate expensing of capital purchases (section 179) to stimulate the economy.
4. D. Congress using the Earned Income Credit for wealth redistribution.

The IRS influences tax law by:

1. A.Working with Congress to close tax "loopholes" in the laws.
2. B. Litigating matters in the "small claims" division of the Tax Court.
3. C. Working with Congress to do things like reduce the amount of the standard deduction so that they can conduct more audits.
4. D. None of the above.