First, using some of the models of human rationality, analyze these features, common of many income tax codes:
(a) Most of the taxes to be paid are collected by income payers (employers, banks) by withholding an estimation of the tax due by the taxpayer before the net income tax is paid to the taxpayer, instead of paying the taxpayer the gross income and having him or her paying the precise tax due afterwards.
(b) Tax withholding is structured usually in such a way that most citizens get a positive refund or tax rebate once a year.
Second, discuss the welfare consequences of a constitutional rule preventing the government from using withholding taxes.