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Economic Issues in the Taxation of Capital Gains

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Author Info
George R. Zodrow

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Abstract

This paper reviews the literature on the effects of capital gains taxes in the United States, focusing on three major issues. First, it considers the long-run effects of capital gains taxes on the level of realizations and revenues, including the extent to which the literature has resolved the issue of whether the realizations response to a capital gains tax will be large enough to result in a revenue increase. Second, it examines the efficiency implications of capital gains taxes, including effects on saving and investment, the 'lock-in' effect, and effects on risk-taking. Finally, the paper reviews several recent studies of the distributional effects of capital gains taxation.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v21s1/CPPv21s1p027.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 21 (1995)
Issue (Month): s1 (November)
Pages: 27-57
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Handle: RePEc:cpp:issued:v:21:y:1995:i:s1:p:27-57

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  1. Fischer, Carolyn & Toman, Michael & Kerr, Suzi, 1998. "Using Emissions Trading to Regulate U.S. Greenhouse Gas Emissions: An Overview of Policy Design and Implementation Issues," Discussion Papers dp-98-40, Resources For the Future. [Downloadable!]
  2. Vijay M. Jog, 1995. "The Lifetime Capital Gains Exemption: Corporate Financing, Risk-taking and Allocation Efficiency," Canadian Public Policy, University of Toronto Press, vol. 21(s1), pages 116-135, November. [Downloadable!] (restricted)
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