Why should the tax laws to encourage saving be reformed?
A)because saving is a key determinant of long-run prosperity
B)to increase taxes on capital gain
C)because higher-income households are taxed too much
D)because economic theory clearly predicts that a higher rate of return encourages saving

Question

Quizplus · Accepted Answer

Saving is a key determinant of long-run prosperity as it promotes investment in the economy, which leads to economic growth and improved standards of living. Reforming tax laws to encourage saving can help incentivize individuals to save more, which can in turn lead to increased investment in the economy and contribute to long-term economic growth.

Why Should the Tax Laws to Encourage Saving Be Reformed