Most investment returns in the U.S. are currently taxed at a 15% rate. Therefore, investors lose 15% of their returns to pay the cost of taxes. If the government reduces this tax to 5%, which effect will most likely result?

Question

12-12-2014
Business

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Most investment returns in the U.S. are currently taxed at a 15% rate. Therefore, investors lose 15% of their returns to pay the cost of taxes. If the government reduces this tax to 5%, which effect will most likely result?

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