Source: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States
Foundamentally speaking I distinguish macroeconomic policies and microeconomic policies by:
Macro -> against the entire economy + counter cylical
Micro -> against specific industry + address a specific goal
Just a few questions:
1.) If the government drops the rate of capital gains tax, should we classify it as a macroeconomic policy (i.e. expansionary) or microeconomic reform (i.e. encourage entrepreneurial culture)?
2.) By taxing short term (<1 year) capital gains at ordinary income tax rate, while maintaining the long term (>1year) capital gains tax at a specific level (i.e.20%), individuals now have more incentives to conduct long term investments compare to short term speculations. Is this an example of macro or microeconomic reform?
Thank you people, good luck for all your exams.
Foundamentally speaking I distinguish macroeconomic policies and microeconomic policies by:
Macro -> against the entire economy + counter cylical
Micro -> against specific industry + address a specific goal
Just a few questions:
1.) If the government drops the rate of capital gains tax, should we classify it as a macroeconomic policy (i.e. expansionary) or microeconomic reform (i.e. encourage entrepreneurial culture)?
2.) By taxing short term (<1 year) capital gains at ordinary income tax rate, while maintaining the long term (>1year) capital gains tax at a specific level (i.e.20%), individuals now have more incentives to conduct long term investments compare to short term speculations. Is this an example of macro or microeconomic reform?
Thank you people, good luck for all your exams.