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CAPITAL GAINS TAXES AND REALIZATIONS: CAN A TAX CUT PAY FOR ITSELF? *
Author(s) -
Auten Gerald E.
Publication year - 1980
Publication title -
policy studies journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.773
H-Index - 69
eISSN - 1541-0072
pISSN - 0190-292X
DOI - 10.1111/j.1541-0072.1980.tb00921.x
Subject(s) - economics , capital gains tax , capital (architecture) , monetary economics , marginal cost of capital schedule , labour economics , public economics , double taxation , econometrics , tax reform , ad valorem tax , state income tax , gross income , archaeology , history
This paper is concerned with the effects of capital gains taxes on realizations of accrued capital gains. Previous empirical studies are summarized and exploratory new research using pooled cross‐section and time‐series tax data is presented. Capital gains realizations are found to be responsive to capital gains tax rates. The magnitude of the response, however, is not sufficient to support the conclusion that a capital gains tax cut would pay for itself.