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The Tax System and theDistribution of Income Should the Government Use theTax System to Reduce Inequality? After studying this chapter, you should be able to: Understand the tax system in the United States, including the principles of taxation that governments use to create tax policy. Understand the effect of price elasticity on tax incidence. Discuss the distribution of income in the United States, and understand the extent of income mobility. The Tax System The Tax System The Tax System The Tax System Which Groups Pay the Most In Federal Taxes? The Tax System The Tax System The Tax System The Tax System Should the United States Shift to a Consumption Tax? The Tax System Tax Incidence Revisited: The Effect of Price Elasticity on Who Actually Bears the Burden Of a Tax Do Corporations Re