Does The Tax Law Discriminate Against the Majority of American Children: the Downside of Our Progressive Rate Structure and Unbalanced Incentives For Higher Education?

Abstract Our graduate income tax structure provides an incentive to shift income to lower-bracket family members. However, some parents have much more latitude to shift income to their children than do others. Income derived from services and private business-by far the majority of American income -is less favored than income derived from publicly traded securities. The rationale given for this discrimination is that parents in services or private business, as…