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For more course tutorials visit www.acc547.com As a political consultant for an aspiring politician, you have been hired to evaluate the following statements that pertain to capital gains and losses. Evaluate the statement and provide at least a one-paragraph explanation of each statement. As you prepare your answer, consider the fact that the aspiring politician does not have much knowledge about taxation. • a.The tax on capital gains is considered a voluntary tax. • b.On October 22, 1986, the Tax Reform Act of 1986 was passed, which eliminated the60% of net capital gain deduction (i.e., an individual taxpayer with $10,000 of netcapital gain was entitled to a $6,000 deduction when computing AGI) before January1, 1987. Many state governments enjoyed a substantial increase in 1986 tax revenue. • c.High-income taxpayers receive the most benefit from preferential treatment for capital gains.
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