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![]() Capital Gains Tax Effect on InvestmentThe effect of the capital gains tax on the economy creates more damage to businesses that the revenue it generates for the federal government. With higher tax rates on gains in capital investing investors are discouraged from investing and revenue from taxes decreases. With a lower capital gains tax the economy is more prosperous and industries are able to raise funds for new projects and employees. There is overwhelming positive evidence for a lower capital gains tax. Positive effects include
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