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The Partiality of Indexing Capital Gains
Author(s) -
Gaffney Mason
Publication year - 1990
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1990.tb02462.x
Subject(s) - citation , library science , search engine indexing , capital (architecture) , information retrieval , computer science , world wide web , history , archaeology
In 1986 Congress made realized capital gains fully taxable, in the spirit of uniformity animating the 1986 reform. The effect on gains taxes was largely offset, to be sure, when Congress lowered the top rate from 50% to 28%, abandoning 70 years of rate progressivity. Congress also lowered the corporate tax rate. Nonetheless, the change did overturn a long tradition of excluding half or more of gains from taxable income. No special concern was shown for the phantom income element in nominal capital gains.