Advocates of lower taxes on capital gains argue that this type of tax cut will raise aggregate

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Advocates of lower taxes on capital gains argue that this type of tax cut will raise aggregate supply by spurring business investment. Compare the effects on investment, aggregate supply, and tax revenues of three different ways to cut the capital gains tax:
a. Reduce capital gains taxes on all investments, including those that were made before tax rates were cut.
b. Reduce capital gains taxes only on investments made after tax rates are cut.
c. Reduce capital gains taxes only on certain types of investments, such as corporate stocks and bonds.
Which of the three options seems most desirable to you? Why?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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