The tax system has a 50 tax rate on gains
The tax system has a 50% tax rate on gains from risky investments, and also allows a deduction at a 50% rate of any losses from risky investments. Which tax policy would increase risk taking more: (a) allowing those deductions on any losses, or (b) limiting the deduction only to losses that offset other gains (no loss offset)?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help