Final answer:
One might choose a tax preparation option like software or a professional based on personal needs and financial complexity. Renting a home may be more flexible than buying, but does not offer equity growth, which is one advantage of homeownership. The IRS is responsible for tax collection, with tax decisions affected by marginal rates and tax policy influenced by politics.
Step-by-step explanation:
Regarding tax preparation options, one is most likely to choose based on personal needs and the complexity of their tax situation. Some may opt for using software programs, while others might prefer hiring a professional tax preparer or an accountant. The advantages of using software include lower cost and convenience, especially if you have a straightforward financial situation. On the other hand, hiring a professional can be more expensive but offers personalized service and expert advice, which can be advantageous for complex tax situations or for those who value time over money. An incentive for choosing one option over the other might include the complexity of your finances; if they become more complicated, professional help might be more appealing.
Comparing the advantages and disadvantages of renting vs. buying a home, renting often requires a lower upfront cost and offers flexibility. However, it doesn't allow for equity building and leaves one subject to rent increases and restrictions imposed by landlords. In contrast, buying a home allows for equity growth and more stability but comes with higher initial costs, maintenance responsibilities, and the potential for property value fluctuations.
The decision on labor supply is influenced more by the marginal tax rate rather than the average tax rate, since it affects the additional income from working more hours. In terms of the Laffer curve, a tax cut does not always increase tax revenues since it depends on the current position on the curve. Lastly, the main function of the Internal Revenue Service (IRS) is to administer and enforce the internal revenue laws, including the assessment and collection of federal income taxes.