Which statement would be TRUE of a prospective capital gains tax reduction?

Question

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Unlike a reduction in the standard capital gains tax rate, a prospective capital gains tax reduction does not deliver a tax break to investments made in the past. Therefore, it would be less expensive, as stated in option D. Option A is false because a prospective capital gains tax reduction would result in a smaller reduction in government revenues than the standard capital gains tax rate. Option B is false because reducing capital gains taxes rewards both past and future risk-taking. Option C is false because a prospective capital gains tax reduction would have the same marginal effect as a similar reduction in standard capital gains tax rates.

Which Statement Would Be TRUE of a Prospective Capital Gains