Asked by Angelina Carbonell on May 10, 2024
Verified
Congress intended preferential tax treatment on capital gains, recognizing that offering an incentive to capital investments is healthy for the economy.
Capital Gains
The profit from the sale of assets such as stocks, bonds, or real estate, which exceeds the original purchase price.
Preferential Tax Treatment
Financial policies or regulations that reduce tax rates or alter tax policies in favor of certain businesses, industries, or transactions.
Capital Investments
Expenditures by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
- Recognize the incentives and intentions behind preferential tax treatments and exemptions.
Verified Answer
BU
Brian UthayakumarMay 13, 2024
Final Answer :
True
Explanation :
Congress did intend preferential tax treatment on capital gains in order to encourage and promote investment in the economy.
Learning Objectives
- Recognize the incentives and intentions behind preferential tax treatments and exemptions.