Advanced Search
MyIDEAS: Login to save this paper or follow this series

Do High Taxes Lock-in Capital Gains? Evidence from a Flat Rate Tax System

Contents:

Author Info

  • Daunfeldt, Sven-Olov

    ()
    (The Swedish Retail Institute (HUI))

  • Praski-Ståhlgren, Ulrika

    ()
    (The Department of Economics)

  • Rudholm, Niklas

    ()
    (The Swedish Retail Institute (HUI))

Abstract

The purpose of this paper is to study, using a comprehensive Swedish panel data set, whether investors are less willing to realize capital gains when the marginal tax rate on capital gains is relatively high. In Sweden capital gains are taxed independently of ordinary income at a flat rate, making it possible to avoid endogenity problems and to include direct measures of capital gains taxation in the empirical analysis. The results indicate that a 10% increase in capital gains tax rate reduces the number of realizations of capital gains with 8.7% and the realized amount, given the decision to realize, with 1.9%. In addition, wealthy individuals seem to respond more to changes in capital gains tax rates than less-wealthy individuals.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by HUI Research in its series HUI Working Papers with number 6.

as in new window
Length: 25 pages
Date of creation: 31 Jan 2007
Date of revision:
Publication status: Published as Daunfeldt, Sven-Olov, Ulrika Praski-Ståhlgren and Niklas Rudholm, 'Do High Taxes Lock-in Capital Gains? Evidence from a Flat Rate Tax System' in Public Choice, 145, 25-38, 2010., 2010, pages 14.
Handle: RePEc:hhs:huiwps:0006

Contact details of provider:
Postal: HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden
Phone: +46 (0)8 762 72 80
Fax: +46 (0)8 679 76 06
Email:
Web page: http://www.hui.se/
More information through EDIRC

Related research

Keywords: Capital gains realizations; tax avoidance; panel data;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pietola, Kyosti & Myyra, Sami & Pouta, Eija, 2009. "Fiscal and trade distorting effects of capital gains tax on land sales - empirical evidence from agricultural land market in Finland," Discussion Papers 50040, MTT Agrifood Research Finland.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hhs:huiwps:0006. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Nilsson).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.