Final answer:
Tad's decision to not report some income on his income tax form is an example of rationalization.
Step-by-step explanation:
The student's statement, "Well, everybody cheats on their income tax, and I need the money more than the government," suggests that Tad is engaging in rationalization. Rationalization is the cognitive process of justifying or explaining one's actions or decisions in a way that makes them seem reasonable or acceptable, even if they are morally or ethically wrong. In this case, Tad is rationalizing his decision to not report some income by convincing himself that everyone cheats on their income tax and that he needs the money more than the government.