Problem
I. Keeping in mind that tax laws are supposed to be founded on the principle of equity amongst taxpayers, use the data to evaluate whether the exclusion from income of tax-exempt interest income is equitable in your opinion.
II. Assume that you were told that the principle of equity should be ignored in the case of the exclusion of tax-exempt interest income because allowing for the exclusion of tax-exempt interest income helps promote investments, which has a positive impact on the economy, including growth in the job sector. Do you agree or disagree with the argument presented? Why or why not?