How would you change the capital gains tax

Reference no: EM132127643

Question: The principal economic argument for abolishing the long-term capital gains tax is that it would boost productivity, and hence pay for itself. The principal economic argument against that move is that it would encourage more people to shift their method of compensation from ordinary income to capital gains income, thereby gutting the income tax system as we know it. Under the assumption that any revisions to the tax system must generate the same amount of revenue, how would you change the capital gains tax to maximize the long-term productivity growth rate?

Reference no: EM132127643

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