Provide two justifications for not taxing unrealized capital gains
What will be an ideal response?
One justification for not taxing unrealized capital gains is based on equity. If individuals are taxed on unrealized capital gains and an asset significantly appreciates an individual might have to sell the asset in order to pay the tax. From an equity standpoint, this appears to be government confiscation. Another justification for not taxing unrealized capital gains is on the grounds that it is often difficult to accurately assess the value of certain assets until they are exchanged in a market transaction. Certainly taxing unrealized capital gains will increase disputes between government and individuals on the valuation of assets.
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Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Which statement below is true?
A) Ann is the most efficient producer of spiritual goods. B) Ann is the most efficient producer of material goods. C) Ben is the least efficient producer of spiritual goods. D) All of the above are true.
The market for used cars is not considered perfectly competitive because:
A. there is complete information. B. the buyers are not price takers. C. the good is standardized. D. there are always very low transaction costs.
The export supply curve shows a country's:
a. domestic surplus at various prices below the "no-trade" equilibrium price. b. domestic shortage at various prices below the "no-trade" equilibrium price. c. domestic supply at the "no-trade" equilibrium price. d. domestic surplus at various prices above the "no-trade" equilibrium price. e. domestic shortage at various prices above the "no-trade" equilibrium price.
Who or what did Edwards Deming blame for the problems in American manufacturing?
A. Tariffs B. Steel prices C. The system D. The workers