Many S&Ls failed when capital gains taxes increased in the late 70s and early 80s,making it less attractive to invest in real estate and causing investors to walk away from their property loans.

Question

Quizplus · Accepted Answer

This statement is true. The increase in capital gains taxes reduced the profitability of real estate investments, leading many investors to default on their property loans, which contributed to the failure of many S&Ls.

Many S&Ls Failed When Capital Gains Taxes Increased in the Late