The U.S. federal government has been able to tax income since _____________. Prior to this . year, ___________ & __________________ were responsible for all the U.S. federal government's tax revenue.

In determining an individual's "appropriate" income tax base (i.e. their taxable income), economists agree individuals should not be tax on all their income. i) What is the definition of income that economists feel individuals are appropriate to be taxed on (list term and its definition)? ii) What type of "fairness" in the tax system does this type of income definition improve on? iii) What is one difficulty with implementing this type of income definition? i)______________________________________________________________________________.

ii) _______________________________________________________________________________.

iii) ______________________________________________________________________________.