Discuss one reason for and one reason against the way the current tax system treats capital gains differently than other types of income.
What will be an ideal response?
Arguments against: (1) Given that only the more affluent in the society generally have capital gains on anything other than houses, eliminating capital gains taxation would make the federal tax system less progressive than it is. (2) Furthermore, a low capital gains tax, or none at all, would encourage speculation in all sorts of assets and might make the stock market and other financial markets more volatile than they already are. Arguments for (1) high capital gains taxes tend to discourage investment, or at least do not reward investors for making good choices; investments involve risk, and having to pay full tax rates if the risk is justified does not seem fair. (2) Moreover, capital gains are generally counted in current dollar terms and do not take into account the effects of inflation, which may make an apparently large return on an investment actually trivial. (3) Finally, an aversion to paying capital gains taxes may encourage some investors to hold onto assets after they have ceased to be as productive as would alternative uses of the same money.
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Provisions in the Treaty of Versailles called for all of the following, except
a. the creation of the League of Nations. b. the enforcement of reparations payments against Germany. c. the specification of limits on Germany's ability to rearm. d. the creation of the International Court of Justice.
Which statement summarizes the structure of the federal judiciary? It is made up of______.
A. the Supreme Court, Circuit and Federal District Courts, and various specialty courts B. the Supreme Court, state courts, and local courts C. the Supreme Court, the federal district courts, and court authorities that handle simpler, more routine cases D. the Supreme Court, courts of commerce, and courts of the interior
Regulation of the media began after World War I, in the heyday of radio
Indicate whether the statement is true or false.
The _____ was the first major piece of education policy passed in the _____ century
a. Elementary and Secondary Education Act (ESEA); nineteenth b. Elementary and Secondary Education Act (ESEA); twenty-first c. No Child Left Behind Act; nineteenth d. No Child Left Behind Act; twenty-first e. None of the above