Question

all taxes are not created equal, explain

Answer 1

The taxes are not created equal because the equal rates may cause the problem for economic efficiency. The tax payers are often encouraged to delay taking profits for avoiding the higher rates. The few might prefers not to realize some gains at all or spread realizations over multiple years; and consequently causes a reduced revenue pickup. When investors alter the asset transactions timing for reducing their taxes, they would not be allocating their capital in the best possible approach and thus reduces the economic efficiency. Thus to avoid this problem all taxes on the rich would not be created equal