Congress Reacts to Judicial Decisions That Interpret the Tax Law

question 84

Essay

Congress reacts to judicial decisions that interpret the tax law in different ways. When it approves of a decision, Congress may act to amend the Code to incorporate the holding. When it disapproves, Congress may amend the Code to nullify its effect. Give an example of each one of these congressional reactions.

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Definitions:

Postwar Prosperity

The period of economic growth and widespread welfare experienced by many countries following the end of World War II.

Free Enterprise

An economic system where private businesses operate in competition and largely free of state control, emphasizing the importance of a market economy.

Defense Department

The part of the United States government responsible for implementing military policies and maintaining armed forces.

GI Bill Of Rights

The 1944 legislation that provided money for education and other benefits to military personnel returning from World War II.