Dynamic Tax Analysis Series: Capital Gains

The papers in this series discuss the taxation of capital gains and use quantitative tools to examine the economic and budgetary consequences of changes in the capital gains tax rate.

The 2003 tax cut reduced the top tax rate on capital gains (and dividends) 15 percent, but those provisions will expire at the end of 2010. If nothing more is done, the maximum capital gains tax rate will rise to 20 percent in 2011. The current top tax rate on dividends is also 15 percent, but if nothing is done, the top tax rate on dividends will jump to the top tax rate on ordinary income in 2011. The Obama Administration and the Congress have talked at various times of raising maximum tax rates on capital gains and dividends to 20, 24, or 28 percent. The IRET studies aim to furnish a better understanding of how such tax rate increases, if they come to pass, would affect the federal budget and, more important, the overall economy.

The Effect Of The Capital Gains Tax Rate On Economic Activity And Total Tax Revenue
October 9, 2009
Author: Stephen J. Entin

The Relationship Between Realized Capital Gains And Their Marginal Rate Of Taxation, 1976-2004
October 9, 2009
Author: Prof. Paul Evans, foreword by Stephen J. Entin

Revenue Estimation Of Capital Gains Needs Improvement
November 9, 2009
Author: Stephen J. Entin