An example of the "equity vs. simplicity" tradeoff is the tax treatment of

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The tax treatment of capital gains is a classic example of the equity vs. simplicity tradeoff. Treating capital gains as regular income would be more equitable, as it would ensure that people with higher incomes pay their fair share of taxes. However, such a system would be much more complex, as investment income can be difficult to calculate and track. Therefore, the current system of lower tax rates on capital gains strikes a balance between equity and simplicity.

An Example of the "Equity Vs