An analysis, from the business and government policy perspectives, of some of the largest government programs that shape the economic environment. The course begins with a theoretical treatment of the principles that should infuse an appropriate role of government in the economy, and proceeds to apply these principles to critical policy issues. The first seven weeks deals with federal income tax policy, focusing on how the tax system affects the economy and business decisions. An evaluation of the major proposals for income tax reform will be examined, including the flat tax and the national retail sales tax.