Abstract While tax history is a fascinating subject in its own right, this paper uses the last nine decades of federal taxes {individual, minimum, and corporate income taxes as well as estate and gift taxes) to teach the principles of tax planning. The rate structure of these taxes has varied widely and changed often since the passage of the Sixteenth Amendment. Through a series of scenarios, the student is asked to consider tax-planning concepts across different eras! each with different statutory rates of tax. From the level of these rates, students gain an understanding of tax-planning strategies-such as shifting income to related taxpayers, accelerating and deferring income and deductions, converting ordinary income into capital gains, and trade-off considerations of one tax vs. another. The importance of the tax-rate variable in planning is demonstrated. Variation of tax rates in the past emphasizes the dynamic nature of taxes. Using the levels and the changes of past rates helps prepare the student for the inevitable alterations that will be encountered during the future, as well as for a range of clients with high and low tax rates. Thus, history becomes relevant in developing students for careers in tax.
William D. Samson (Sat,) studied this question.