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Lower tax rates on dividends and capital gains

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Tax rates on both dividends and capital gains have been cut down to historical lows. The maximum tax rate on both dividends and capital gains is now set at 15%. Policy makers agreed to such a reduction hoping to see a faster economic recovery and further job growth. These policy makers would like to get your expert opinion on this issue. Using course materials, the Internet, and the Library's resources - answer the following questions:

Do you think lower taxes on dividends and capital gains can help hasten an economic recovery.

Do you think lower taxes on dividends and capital gains can help further growth in the US production and job markets? Why?

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The response addresses the queries posted in 424 words with references.

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The response addresses the queries posted in 424 words with references.

// The entire world is facing a tough situation in the present times. Each country's government is seeking out new solutions for the recovery of the economy. The federal government cut in capital gain and dividend. Here, we will discuss the impact of cut in taxes over economy recovery, employment and production. //

The low tax rate affects supply side of the money. It comes under fiscal policy of the government. The low tax rate on the dividend and capital gain will not help to boost economy in a significant manner. The US government cut taxes on ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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