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Capital gains tax and investments

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The tax rates on capital gains from increases in asset values have recently been reduced. In respect to the parties that benefit from capital investment or wealth creation, explain why investment would decrease or increase as a result of the change in tax rates.

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The expert describes the relationship between capital gains tax rates and investment decisions.

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President Bush cut the capital gains tax rate in conjunction with several other tax cuts and the creation of more opportunities to grow wealth tax free in instruments such as a Roth IRA and the 529 college savings accounts. In 2006, he signed the pension protection act making the tax cuts permanent.

In a Roth and ...

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