Business, 19.11.2019 06:31, battlemarshmell

When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capital gain. if he sells the asset, he "realizes" the gains that have previously accrued. under the u. s. income tax, realized capital gains are taxed, but accrued gains are not.
a. explain how individuals' behavior is affected by this rule.
b. some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. how might this be so?
c. do you think it is a good rule to tax realized but not accrued capital gains? why or why not?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:00, kyllow5644

Which of the following is a disadvantage to choosing a sole proprietorship business structure? question 9 options: the owner has personal responsibility for the company's liabilities. the owner has to share the profits with partners. the owner is still liable for personal debts. the owner has to report to shareholders.

Answers: 1

continue

Business, 22.06.2019 11:50, adrianmelchor146

The following are the current month's balances for abc financial services, inc. before preparing the trial balance. accounts payable $ 10,000 revenue 6,000 cash 3,000 expenses 17,500 furniture 10,000 accounts receivable 14,000 common stock ? notes payable 6,500 what amount should be shown for common stock on the trial balance? a. $48.000b. $12.500c. $27.000d. $28.000

Answers: 3

continue

Business, 22.06.2019 20:00, kickdoedon

During the month of march 2017, weimar world, a tax-preparation service, had the following transactions. * billed $496,000 in revenues on credit * received $164,000 from customers' accounts receivable * incurred expenses of $194,000 but only paid $87,700 cash for these expenses * prepaid $32,220 for computer services to be used next month what was the company's accrual basis net income for the month? select one: a. $302,000 b. $264,080 c. $ 41,860 d. $408,300 e. none of the above

Answers: 3

continue

Business, 22.06.2019 22:10, jpimentel2021

What is private equity investing? who participates in it and why? how is palamon positioned in the industry? how does private equity investing compare with public market investing? what are the similarities and differences between the two? why is palamon interested in teamsystem? does it fit with palamon’s investment strategy? how much is 51% of teamsystem’s common equity worth? use both a discounted cash flow and a multiple-based valuation to justify your recommendation. what complexities do cross-border deals introduce? what are the specific risks of this deal? what should louis elson recommend to his partners? is it a go or not? if it is a go, what nonprice terms are important? if it’s not a go, what counterproposal would you make?

Answers: 1

continue

Do you know the correct answer?

When someone owns an asset (such as a share of stock) that rises in value, he has an "accrued" capit...