Research Report Capital Gains Tax Rates, Stock Markets, and Growth
Troy Kravitz, Leonard E. Burman
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Claims that increasing capital gains tax rates will adversely impact stock markets and economic growth are not strongly supported by empirical data. Over the last half-century, the correlation between the maximum capital gains tax rate and the ratio of the S&P index to GDP has been about -0.35. Also, capital gains rates display little evidence of correlation with economic growth.
Research Areas Taxes and budgets
Tags Individual taxes Federal budget and economy