Capital gains are taxed at a different rate than income and this reduces revenues the government receives. All else equal, what would happen if capital gains taxes were eliminated?
A) They would have to be replaced by a consumption tax.
B) The government would not be able to spend money on any programs.
C) Everyone would have to pay less in taxes.
D) The deficit would increase because of lack of revenues.
D
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Signals can help prevent adverse selection as long as a false signal is costly to the person sending it
Indicate whether the statement is true or false
Specialization of labor occurs when work is assigned based on the: a. demands of the labor union. b. skills of the workers
c. experience of the workers. d. gender of the workers.
The pool of information collected by financial markets is usually:
A. valuable and not made available until the parties pay for it. B. only available to lenders. C. more than a borrower needs to make a loan. D. summarized in the form of a price.
Why doesn't the age-earning cycle continuously increase until retirement age?
What will be an ideal response?