Question

It seems that both households and businesses would benefit if the federal income tax were simpler and tax forms were easier to fill out. Why then have the tax laws become increasingly complicated? Reply with at least 200 words and one reference in APA format.

Answer 1

The tax laws are used to encourage certain activities and at the same time wanted to discourage others.Thus households and business have kept as two entities inorder to give different weightate on certain laws. The income tax from business would be having more priority and importance as it is a revenue center and households are mostly cos centers. Thus federal laws helps in accounting both as different and it also help auditors to differentiate various sub classification of laws under households and business.