What is the empirical evidence on whether capital gains tax cuts lead to a permanent increase in capital gains realizations? What does this evidence imply for the prospects of lowering capital gains taxes as a long-term revenue-generation tool?
Answer to relevant QuestionsWhen you spend money on your children’s consumption, this transfer is not taxed, but if you make a large direct gift to your children, it is taxed. Why does this represent a horizontal inequity inherent in transfer taxes? ...Estoluania is considering replacing its progressive tax system with a flat tax that would raise equal revenue. How could this change encourage risk-taking behavior? How could it discourage risk-taking behavior? Suppose that new machines cost $504, and the marginal benefit from new machines is MB = 246 – 6K, where K is the number of machines purchased. The depreciation rate is 15% and the dividend yield is 10%. a. What amount of ...Suppose that the corporate income tax rate is 30%, the personal income tax rate on dividend income and the interest tax rate are both 35%, and the capital gains tax rate is 20%. Compare the after-tax returns on each dollar ...How would fundamental tax reform likely increase tax efficiency in the United States?
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