Author Question: Which of the following are arguments against taxing unrealized capital gains? a. A person might ... (Read 59 times)

KWilfred · **on:** Jul 1, 2018

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

Question 2

It is difficult to get the necessary information to apply corrective taxes in the real world, thus _____.

a. most government reluctantly apply to reduce negative externalities
b. use regulation to reduce negative externalities
c. use moral suasion to reduce negative externalities
d. most governments fail to do anything to reduce negative externalities