When someone owns an assest, such as a share of stock, that rises in a value they have an "accured" capital gain. If they sell the asset, they "realize" the gains that have previously been accured. Under the U.S income tax sysytem, realized gains are taxed, but accured gains are not.

1) Please explain how individuals' behavior is affacted rule.

2) Some economists belive that cuts in capital gains tax rates raise tax revenue. How migth this be so?

3)Do you think it is a good rule to tax realized but not accured capital gains? Why or why not?