Discusses the fairness and economic consequences of taxation of individual income, the possible improvement of income tax through exclusions and deductions, more effective taxation of capital gains, and revision of personal exemptions and rates.

Introduction to US law of federal income taxation of individuals. Includes material on tax credits, mark-to-market regimes, original-issue discount, consumption- vs. accretion-model income taxation.

This concise casebook distills the major themes of taxation. It offers well-developed problems and discussion questions in every chapter. The book is designed to help teachers and students make sense of both law and policy, and demands that students read the Code in addition to the text. Like the first edition, this edition develops a running analysis of income-tax and consumption-tax elements in the Code. It also focuses on the social policy effects of the tax law. The second edition is fully updated through the 2009 Stimulus Act.