Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

When someone owns an asset (such as a stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not.
a) Explain how individuals' behavior is affected by this rule.
b) Some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. How might this be so?
c) Do you think it is a good rule to tax realized but not accrued capital gains? why or why not?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9477239

Have any Question?


Related Questions in Microeconomics

Question in fast food we often see that a single franchisee

Question: In fast food we often see that a single franchisee owns all the outlets in a certain area that may be as large as a city. How does this increase the value that a franchise agreement is likely to create? The res ...

Question what type of economic policy did mexico follow

Question: What type of economic policy did Mexico follow from the end of World War II until the 1980s? Describe the three-stage strategy that supporters of this policy emphasized, was the outcome of these policies for Me ...

Discuss transportation and logistics management policywhat

Discuss transportation and logistics management policy. What impact does policy (local, state, and/or federal) have on transportation? For example, how does policy affect a retailer in trying to get their product from a ...

Question when a neighborhood is cleaned up and kept neat

Question: When a neighborhood is cleaned up and kept neat, there are a number of positive spillovers: higher property values, less crime, happier residents. What types of government policies can encourage neighborhoods t ...

Question a monopoly has costs described by tcq 7500 20q

Question: A monopoly has costs described by TC(Q) = 7500 + 20Q. Demand is described by P = 100 - 0.2Q. What is the monopolist's profit-maximizing quantity (Q)? What is the monopolist's profit-maximizing price (P)? The re ...

Question from 2000 to 2002 the sharp decline in capital

Question: From 2000 to 2002, the sharp decline in capital spending was almost completely matched by the sharp decline in government saving. (A) How do you think the overall economy would have responded? However, suppose ...

Question what do isoquants look like if there are no

Question: What do isoquants look like if there are no substitution possibilities at all, for example, if making a one-pound cake requires precisely three eggs and three cups of flour? The response must be typed, single s ...

Question for each of the following examples draw a

Question: For each of the following examples, draw a representative isoquant. What can you say about the marginal rate of technical substitution in each case? a) A firm can hire only full-time employees to produce its ou ...

Question there are two consumers a and b consumer a is

Question: There are two consumers A and B. Consumer A is willing to pay 3-2F dollars for a unit of flowers for the public square and B is willing to pay 5-5F dollars for a unit of flowers. If the cost of flowers is const ...

Question topic the annual budget deficit in the usdescribe

Question: Topic: The Annual Budget Deficit in the US Describe the change that must occur for it to come about. Also identify the major barriers or resistance to change and how you would propose to overcome them. Finally, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved