Why should the tax laws to encourage saving remain as they are?
A)because a decrease in capital gain taxes would be more beneficial to the wealthy, leading to an increase in income inequality
B)because tax rates on savings are relatively low
C)because people would probably save more than if taxes were lowered
D)because tax cuts might cause a budget deficit

Question

Quizplus · Accepted Answer

Tax laws that favor savings often benefit wealthier individuals more, as they are more likely to have significant capital gains, potentially increasing income inequality.

Why Should the Tax Laws to Encourage Saving Remain as They