Chapter Summary: Some Background

This chapter discusses general aspects of the tax system:

The Numbers tells how much revenue the federal, state, and local governments collect, how the money is spent, and how revenue collections in the United States compare with those of other industrialized countries.
Budget Process describes the process by which Congress and the president arrive at a budget each year, along with the governing rules.
Taxes and the Budget explains the process by which Congress and the president arrive at a budget each year, along with the governing rules.
Taxes and the Economy explores the effect of taxes on the larger economy and addresses some widely debated questions, such as whether tax cuts can pay for themselves.
Economic Stimulus looks at the tools available to the government to help reverse economic downturns and evaluates their likely effectiveness.
Distribution of Tax Burdens discusses how best to measure the distribution of taxes among types of taxpayer or across income classes and shows who pays how much tax.
Income Tax Issues explans various factors related to the federal income taxes such as deductions, tax credits, and phaseouts.
Tax Expenditures assesses the costs, in terms of forgone revenue, of various tax provisions that provide tax breaks for certain taxpayers and activities.
The Tax Gap analyzes the difference between taxes due and taxes paid and explains why governments are unlikely ever to collect all of the taxes people and corporations owe.
Tax Shelters discusses the different schemes that individuals and corporations adopt to shield themselves from taxes.
The Bush Tax Cuts quantifies the effects of the many tax cuts enacted since 2001 and whom they have benefited.