Why Should the Tax Laws to Encourage Saving Remain as They

question 44

Multiple Choice

Why should the tax laws to encourage saving remain as they are?

• A)because a decrease in capital gain taxes would be more beneficial to the wealthy, leading to an increase in income inequality
• B)because tax rates on savings are relatively low
• C)because people would probably save more than if taxes were lowered
• D)because tax cuts might cause a budget deficit

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