Final answer:
The statement about the simplicity of the Federal tax law making it easier to come up with different treatments is false. The U.S. tax system is quite complex, and simplifying its representation while keeping essential aspects intact is a difficult task.
Step-by-step explanation:
False: the simplicity of the Federal tax law does not necessarily make it easier to come up with different treatments. In reality, the U.S. Federal Tax System is quite complex, involving numerous rules and regulations that can be hard for individuals to navigate. Taxes are intended to be equitable, simple, and efficient, but realistically, they often fail to meet these criteria due to their intricate nature. The benefit principle of taxation and the ability to pay principle are two key concepts within the tax system. While the former suggests that those benefiting from services should pay in proportion to their received benefits, the latter entails that those who are more capable of bearing the tax burden should contribute more. Representing the tax code in a simplified manner while retaining its important features is a challenging aspect of economic study.