Under current law, if your capital losses exceed your capital gains, you can deduct as much as
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Under current law, if your capital losses exceed your capital gains, you can deduct as much as \(\$ 3,000\) of losses against other forms of income. In the wake of massive declines in the stock market, in 2002 several members of Congress suggested that this \(\$ 3,000\) figure be increased to \(\$ 5,000\). Evaluate this proposal from the viewpoint of the Haig-Simons criterion. That is, would the proposal lead to an income tax base that is closer to or farther from the HaigSimons ideal than the status quo?
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