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1. The article that I found was on the LTCG tax which is the Long Term Capital Gains tax. There is an argument that capital gains both long and short term should b taxed and the problem is in how they have chosen to implement these ideas. One of the issues is that there are greater revenue loses and inequities with special capital gains tax. The government uses tax rates to direct investments and provide incentives exempting capital gains. They are trying to use marginal rates for capital gins tax, but there is less scrutiny with capital gains tax not monitored by the tax authority. So compliance becomes an issue for investors. Not all investors are subject to tax audit requirements so it leaves an inequality with capital gains tax. They want to tax them at a lower rate so that investors are willing to be more complaint when it comes to their capital gains tax. This way they will be able to get audited if needed and there will be more eyes to make sure that there is no deception or corruption in the way that money is being received as well. They just want to make sure meaning the government and investors that there is a fair tax rate on capital gains, and investors want to make sure that they are not going to get taxed more for their investments as well.

How new LTCG tax with STT violates three basic principles of taxation. (2018, February 12). Retrieved from https://economictimes.indiatimes.com/wealth/tax/how-new-ltcg-tax-with-stt-violates-three-basic-principles-of-taxation/articleshow/62859024.cms

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you only need to reply to her minimum 200 words per post

2. I found an interesting article on the Forbes website that questioned if boosting gender equality boosts the economy. The first principle that immediately came to mind was principle one; people face trade-offs. (Mankiw, 2018). The article spoke in depth about the trade-offs that women would have to make to see this type of economic gain, namely spending less of their childbearing years at home giving birth and raising children. This idea flows smoothly into principle two which speaks to the cost of decision making. (Mankiw, 2018). There are many costs associated with a woman who chooses to focus on a career rather than the family life. She will more than likely reap the marginal benefits of a higher standard of living due to a higher income, but at what cost? Often women are frowned upon because society has conditioned us to believe that a woman’s “place” is in the home. Granted, we have come a long way from that mindset, but speaking from experience, it weighs heavy on a single mother’s mind. Is the money worth the trade-off of the lost time with your children that you can never get back?

The author argued that while the economic growth in GDP offered from the McKinsey report did not seem far-fetched, he believes that the idea behind the study leaves room for interpretation. In fact, Tim Worstall stated, “Yes, I agree, gender equality (although I argue for equality of opportunity, not outcome) for all the world would be a lovely thing to have. But it’s something that flows from economic growth, not something that causes it. So, if we want more of that moral good, that equality, then we’ve got to keep going with the policies that produce the economic growth.” (2015). Worstall’s thoughts speak to principle seven, governments can sometimes improve market outcomes. (Mankiw, 2018). He believes that if the focus continues on ways to improve the economy, through supply and demand, trade, and policy, that equality will be the effect not the cause.

Reference

Mankiw, N. G. (2018). Principles of microeconomics(8th ed.). Boston, MA: Cengage Learning. Retrieved July 2, 2018, from https://ng.cengage.com/static/nb/ui/evo/index.html?eISBN=9781337108249&id=157744195&snapshotId=450665&dockAppUid=16&nbId=450665&.

Worstall, T. (2015, September 24). Boosting Gender Equality Doesn’t Boost the Economy. Retrieved July 2, 2018, from https://www.forbes.com/sites/timworstall/2015/09/24/boosting-gender-equality-doesnt-boost-the-economy/2/#1957b8e231eb

just reply to her article and you need to write minimum 200 words

Secondary Post Instructions

For the article and post to which you are replying, extend the conversation using the first four of the Ten Principles of Economics. What other incentives could be changed? Do you think that changing the incentives that were noted in your classmate’s discussion actually change the decision? Why might they change the decision for some people but not others? Are there other situations of which the discussion reminds you, and how would you apply the Ten Principles and what your classmate wrote to that related situation? Are there other decision-makers that could be analyzed?

Writing Requirements

  • In addition to one initial post, respond to at least two peers.
  • Initial Post Length: minimum of 250 words
  • Secondary Post Length: minimum of 200 words per post
  • Use APA format for in-text citations and list of references.

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