Which of the Following Is Not an Argument in Favor

question 302

Multiple Choice

Which of the following is not an argument in favor of reforming the tax laws to encourage saving?

• A)Saving is a key determinant of long-run prosperity.
• B)Current tax laws discourage saving for the purpose of leaving a large bequest.
• C)The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving.
• D)The tax code currently taxes some forms of capital income twice.

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