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Solutions - Found on the left of page - Ditch the current tax system - Fix the Alternative Minimum Tax - Flat Tax - Increase Payroll Taxes on Some or all Workers - Raise income Taxes to 50% - Return to Higher Taxes on Estates - Misc. New Taxes

Mrs. Chuhran Name: ___ Economics

How do we solve the tax problem? (30 pts) Due Friday 1/11/10

President Obama has created a special task force to help create a solution to the current deficit problems. He knows that he has to look at both the tax and spending side of the problem. While researching what to do he came upon our tax wiki and has decided to ask you all for advice. He would like to know which of the alternative “solutions” posted on the wiki you would suggest he follow, you must select one of the “solutions”. Using the information found on the wiki, and any additional research that you feel you need to answer this question write a **well reasoned, well written, and economically plausible** letter of suggestion to the President.

Your letter should include the following:

A. A background about the types of taxes that American’s pay, why we pay taxes, and how taxes can affect the economy. B. A summary of three possible “solutions” to the tax. C. The reason why you chose the “solution” you are suggesting to the President. D. A summary of the pro’s and con’s of your favored “solution” so the President will be well informed.

Your letter should be in a professional letter format at least 2 pages, typed, and double-spaced.