Question

How does the US tax policy encourage long-term investments?

A.
by making long-term investments tax exempt
B.
by making Treasury bonds tax exempt
C.
by making it illegal to earn short-term gains
D.
by providing a lower tax rate for long-term gains

Answer 1

Answer: D by providing a lower tax rate for long-term gains

Answer 2

Answer: its D

Explanation

Long Term Capital Gains Taxes tend to be lower than short term