Summaries of Papers in This Issue.

Abstract The paper presents summary of various articles published in the September 1997 issue of the Journal of the American Taxation Association. In the paper The Effect of the tax reform Act of 1986 on the Capital Structure of Foreign Subsidiaries by James K. Smith, it is said that the Tax Reform Act of 1986 (TRA86) changed the way the U. S. multinationals (MNC) allocate the U. S. interest expense between domestic and foreign income. As a result, incentives were created for the U. S. MNC to increase the debt levels of their foreign subsidiaries. Smith examines whether the U. S. MNC responded to these incentives by increasing the debt in theft foreign subsidiaries after the passage of TRA86. The paper Effect of Moral Reasoning and Educational Communications on Tax Evasion Intentions by Steven E. Kaplan, Kaye J. Newberry and Philip M. J. Reckers focuses on the taxpayer's compliance. The U. S. income tax system is based on the willingness of citizens to pay their taxes voluntarily. The Internal Revenue Service estimates that for each one-percentage point increase in the voluntary compliance rate, the U. S. could raise 7 to 10 billion dollars of additional revenues.