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Part $1$

Why does the tax concept of income more closely resemble the accounting concept of income than the economic$$ concept?

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Part $1$

A$.$

Administering the tax law based on the accounting concept of income is easier and$$ wherewithal$-$to$-$pay is greater when income is taxed as it is realized.

B$.$

The tax concept of income is based primarily on changes in an$$ individual's wealth. The$$ wherewithal$-$to$-$pay is not considered when determining when taxes should be assessed.

C$.$

Under the tax concept of$$ income, unrealized$$ gains, as well as gifts and inheritances are income. This is deemed the most objective measure of income and is consistent with the accounting concept of income.

D$.$

Both B$$ & C are correct.