If there is a 20 percentage point drop in the maximum capital gains tax rate, _____percentage points of the increase in the share of the 1 percent can be attributed to the drop in the capital gains tax rate.

Question

Quizplus · Accepted Answer

A drop in the capital gains tax rate can lead to an increase in the share of income for the top 1 percent, and research suggests that approximately 8 percentage points of this increase can be attributed to such a tax rate drop.

If There Is a 20 Percentage Point Drop in the Maximum