1. Congress reduced taxes on middle- and low-income taxpayers with the expectation that they will spend most of that money and help create more economic growth. Was this idea good or not, and why?

2. Many college students choose not to file a federal income tax return, assuming that the income taxes withheld by employers “probably” will cover their tax liability. Is such an assumption correct? What are the negatives of this practice if the employers withheld too much in income taxes? What are the negatives if the employers did not with-hold enough in income taxes? Will any tax credits be lost?

3. Long-term capital gains are taxed at a rate of 20, 15 or 5 percent, or zero (0). What is your opinion on the fairness of these lower capital gains tax rates as compared with the marginal rates applied to income earned from employment that range as high as 39.6 percent?

4. Some college students earn money that is paid to them in cash and then do not include this as income when they file their tax returns. What are the pros and cons of this practice?

5. Sideline Business. Identify one possible sideline business that you might engage in to reduce your income tax liability.

6. Name three tax credits that a college student might take advantage of while still in school or during the first few years after graduation.

7. Identify five strategies to reduce income tax liability that you may take advantage of in the future.

8. Review the list of exclusions on pages 112 and 113 and select 3 you think ought to be classified as taxable income rather than exclusions.

9. Eliminate Tax Credits. Review the list of tax credits on pages 119 and 121 and select 2 you think ought to be eliminated, and explain your reasoning.

10. Review the list of strategies to reduce your income taxes on pages 125 through 133 and select 2 you think you might use in the future, and explain your reasoning.