Employment Effects of Reducing Capital Gains Tax Rates in Ohio
AbstractEntrepreneurial activity is a key driver of job creation, and entrepreneurs and their financiers are especially sensitive to capital gains taxes. As a result, a cut in the capital gains tax rate should be expected to stimulate job creation to some degree. We measure the magnitude of this effect by examining the treatment of capital gains across the 50 states over roughly the past 40 years. Our results suggest that a complete elimination of the taxation of capital gains realized by Ohio taxpayers would lead to the creation of 40,000 new jobs. Applying this estimate to proposals currently under discussion suggests a somewhat smaller effect.
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Bibliographic InfoPaper provided by Kenyon College, Department of Economics in its series Working Papers with number 1101.
Date of creation: Jun 2011
Date of revision:
capital gains tax rate; employment;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-13 (All new papers)
- NEP-ENT-2011-07-13 (Entrepreneurship)
- NEP-LAB-2011-07-13 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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