Under the Revenue Reconciliation Act of 1993, the tax-paying individual investor may prefer low dividends and higher expected capital gains because ____.

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The tax on capital gains can be deferred, which allows the investor to delay payment of taxes on capital gains until the asset is sold. This can be advantageous for investors who prefer greater flexibility in managing their tax liabilities. Additionally, the top marginal rate on capital gains is typically lower than on dividend income, which provides an incentive to invest for capital gains rather than dividends.

Under the Revenue Reconciliation Act of 1993, the Tax-Paying Individual