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Please Stow Your Outrage About a Capital Gains Tax Hike!
There is no evidence for any of the calamities that opponents argue would befall the economy and markets.
By Scott Sumner
To anyone with knowledge of public finance theory, reading media reports of capital gains taxation is almost painful. Here’s an example from Bloomberg:
A group of economists recently argued in the Chicago Booth Review that the prevailing wisdom among scorekeepers that the revenue-maximizing rate is about 30% may be misplaced — and could allow for an even higher rate. A pair of Princeton University economists published research in December showing that hikes may raise “substantially more tax revenue” than scorekeepers currently believe and that the revenue-maximizing rate may be about 40% — almost exactly where Biden’s proposal falls.
Economists and analysts have also made the case that cuts in capital gains rates have a negligible impact on investment decisions and economic growth. (Though, like much around capital gains, that debate isn’t entirely settled.)
Your thoughts are appreciated.
THANK YOU
DICTIONARY: Health Economics and Finance
FOREWORD: https://healthcarefinancials.files.wordpress.com/2007/10/dr-getzen.pdf
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Filed under: Accounting, Taxation | Tagged: capital gains, public finance, Scott Sumner | Leave a comment »
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