Question: 4. Capital gains taxes decrease the returns that people can earn on their savings / investments. The taxes basically make the intertemporal budget constraint flatter.

4. Capital gains taxes decrease the returns that people can earn

4. Capital gains taxes decrease the returns that people can earn on their savings / investments. The taxes basically make the intertemporal budget constraint flatter. Show that when the capital gains tax increases, a saver might start saving less, but the person could also start saving more. 4. Capital gains taxes decrease the returns that people can earn on their savings / investments. The taxes basically make the intertemporal budget constraint flatter. Show that when the capital gains tax increases, a saver might start saving less, but the person could also start saving more

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