How will this reform affect horizontal equity

Reference no: EM133633525

Question: You and a friend are discussing personal finan Holding constant the rest of the U.S. federal tax code, consider a tax reform that would treat realized capital gains as ordinary income for all taxpayers. A. How will this reform affect vertical equity? Explain your reasoning. B. How will this reform affect horizontal equity? Explain your reasoningce and investment strategies. Your friend, who just graduated from college and landed his first job, tells you that he is choosing to invest $1,000 of each paycheck in a Roth IRA each year rather than in a traditional IRA because he strongly believes that it is the financially prudent decision to make for his future retirement. Is your friend right? Explain why or why not.

Reference no: EM133633525

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