The U.S. tax code is continually revised and updated to meet the changing needs of government and society. Two significant adjustments occurred in 1969 and 1986.
What are some causes of the Tax Reform Acts of 1969 and 1986? What effect did these reforms have?
Read each of the phrases below. Classify each phrase as a cause or an effect of the Tax Reform Acts of 1969 and 1986 by clicking on the letter of the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
1) Complicated tax code
2) Wealthy use loopholes and do not pay taxes
3) More money to the government
4) Sagging economy
5) Wealthy pay their fair share and invest the rest
6) Corporations pay taxes
7) Corporations do not pay taxes
8) Government needs revenue
9) Lower-income groups get tax cuts and exemptions
10) Lower-income groups pay too much in taxes