To stimulate additional economic investment,some policy makers favor increasing the tax rate on capital gains.

Name: To stimulate additional economic investment,some policy makers favor increasing the tax rate on capital gains.
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Question

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Increasing the tax rate on capital gains would likely decrease the incentive to invest, as investors would have to pay a higher tax rate on any profits they make. Therefore, it would not be expected to stimulate additional economic investment.

To Stimulate Additional Economic Investment,some Policy Makers Favor Increasing the Tax