Review Figure 4.1 and complete one of the following projects:

a. Is the advice to "defer income and accelerate deductions" always a good tax planning strategy? Given the projected demands on Social Security and the possibility of rising marginal tax rates, is that good advice for the next few years?

b. As a group, select different dates and research the marginal tax brackets and income ranges for each. What social, political, or economic events were cited to explain the rates? Did specific events trigger changes in the rates? Were presidents applauded or criticized for rate changes that occurred during their administrations? Report your findings to the class.

Figure 4.1

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FIGURE 4.1 Historical Top Marginal Income Tax Rate 100% 90% Marginal Rate 80% 70% 60% 50% 40% 30% 20% 10% 0% 1913 1918 1923 1928 1933 1938 1943 1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 2012