A column in the Wall Street Journal asks the question: Are capital gains so different from earned
Question:
A column in the Wall Street Journal asks the question: “Are capital gains so different from earned income that they should be taxed at a different rate?”
a. What is a capital gain?
b. In what ways are capital gains taxed differently than salary and wage income?
c. What is the economic argument for taxing capital gains differently than other income?
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a A capital gain is realized when the price of an asset exceeds its purchase price For stocks a cap...View the full answer
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Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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