Policy Watch: Cutting Capital Gains Taxes
From 1922 to 1986, long-term capital gains were taxed at lower rates than other income, generally by allowing a portion of long-term capital gains to be excluded from taxable income. While taxing capital gains at the same rates as other income has been hailed by some as a major accomplishment of tax reform, it has been criticized by others as one of its main flaws. As a result, there have been proposals each year since 1986 to restore some type of capital gains preference. These proposals have sparked a lively debate centered on three main questions: Would reducing the capital gains tax lower or raise federal revenues? Who benefits most from cutting the capital gains tax? Would lower tax rates on capital gains improve economic performance?
Volume (Year): 5 (1991)
Issue (Month): 1 (Winter)
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References listed on IDEAS
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.:
- Pechman, Joseph A, 1987. "Tax Reform: Theory and Practice," Journal of Economic Perspectives, American Economic Association, vol. 1(1), pages 11-28, Summer.
- Auten, Gerald E. & Burman, Leonard E. & Randolph, William C., 1989. "Estimation and Interpretation of Capital Gains Realization Behavior: Evidence from Panel Data," National Tax Journal, National Tax Association, vol. 42(3), pages 353-74, September.
- Poterba, James M., 1989. "Capital Gains Tax Policy Toward Entrepreneurship," National Tax Journal, National Tax Association, vol. 42(3), pages 375-89, September.
- Stiglitz, Joseph E., 1983.
"Some aspects of the taxation of capital gains,"
Journal of Public Economics,
Elsevier, vol. 21(2), pages 257-294, July.
- Joel Slemrod, 1989.
"Optimal Taxation and Optimal Tax Systems,"
NBER Working Papers
3038, National Bureau of Economic Research, Inc.
- Feldstein, Martin & Slemrod, Joel & Yitzhaki, Shlomo, 1980.
"The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains,"
The Quarterly Journal of Economics,
MIT Press, vol. 94(4), pages 777-91, June.
- Martin Feldstein & Joel Slemrod & Shlomo Yitzhaki, 1981. "The Effects of Taxation on the Selling of Corporate Stock and the Realization of Capital Gains," NBER Working Papers 0250, National Bureau of Economic Research, Inc.
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