Question

How often does tax law typically change?

1) Every two years, with each new Congress
2) Every four years
3) With each new U.S. president
4) Every decade
5) Yearly

Answer 1

Tax laws can change each year, with Congress making revisions based on political and economic goals. These changes can adjust taxes for individuals and businesses and are often debated politically.

Step-by-step explanation:

Tax laws do not change at a fixed interval; rather, they can change yearly, as tax revisions are made depending on the social and economic goals of the current administration. The Congress adds, deletes, and modifies tax laws and brackets each year, typically influenced by political debates and policy objectives. For example, the tax policies from different administrations, such as those of Kennedy and Reagan, featured significant changes to the tax laws within their respective terms.

Changes to tax laws are an endless source of political debate because they have major effects on the distribution of income, creating winners and losers with every modification to the tax code. Individuals, businesses, and corporations are all affected by these changes, which might include the introduction of value-added taxes, flat taxes, or more progressive tax brackets.