Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Why do you think the Federal government taxes long-term capital gains and qualified dividends at a lower rate than earned
and other types of unearned income?

Sagot :

24kallice

Answer:

The justification for a lower tax rate on capital gains relative to ordinary income is threefold: it is not indexed for inflation, it is a double tax, and it encourages present consumption over future consumption. ... Future personal consumption, in the form of savings, is taxed, while present consumption is not.

Explanation:

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.