This workbook contains a tool to help policymakers and others analyze existing tax and ﬁscal structures and proposals to determine how well they satisfy the basic principles of good tax policy. The analysis requires the user to consider the purpose of the tax or proposal, how it works, its degree of fairness, and whether it will operate efﬁciently. The analysis will point out where there are plusses and minuses (areas for improvement) in the item being analyzed.
The analysis should also help to stimulate debate and discussion on the ﬁner points of tax proposals and alternatives. This should lead to a deeper understanding of tax and ﬁscal systems and issues.
The worksheet needed to do the analysis is included in this workbook (along with a brief explanation of the tax principles and four case studies of analyzed items).