Macroeconomics 13th Edition by William Baumol ,Alan Blinder

تمرين 2

(More difficult) Advocates of lower taxes on capital gains argue that this type of tax cut will raise aggregate supply by spurring business investment. Compare the effects on investment, aggregate supply, and tax revenues of three different ways to cut the capital gains tax:
a. Reduce capital gains taxes on all investments, including those that were made before tax rates were cut.
b. Reduce capital gains taxes only on investments made after tax rates are cut.
c. Reduce capital gains taxes only on certain types of investments, such as corporate stocks and bonds. Which of the three options seems most desirable to you Why