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Under current law, if your capital losses exceed your capital gains, you can deduct as much as $3,000 of losses against other forms of income. In the wake of massive declines in the stock market, in 2009 Senator Orrin Hatch suggested that figure be increased. Evaluate this proposal form the viewpoint of the Haig-Simons criterion. That is, would the proposal lead to an income tax base that is closer to or farther from the Haig-Simons ideal than the status quo?

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