Which of the Following Are Arguments Against Taxing Unrealized Capital

question 3

Multiple Choice

Which of the following are arguments against taxing unrealized capital gains?

• A)A person might have to sell an asset in order to pay the tax on it.
• B)It might be difficult to determine the increase in valuation.
• C)It increases the incentive to hold onto appreciated assets.
• D)a and b
• E)b and c

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Definitions:

Descriptive Methods

Research methods that involve observing and describing the behavior of a subject without influencing it in any way.

Causal Explanations

Reasoning that identifies causes or reasons for phenomena, often used to understand why something happened.

Experimental Methods

Research methodologies that involve the manipulation of variables to determine cause-and-effect relationships in controlled conditions.

Case Study

A research method involving an up-close, in-depth, and detailed examination of a subject of study (the case), as well as its related contextual conditions.