The Economic Effects of Capital Gains Taxation

Hungerford, Thomas L.

Library of Congress. Congressional Research Service.

关键词: Taxation;    Capital gains tax;    Income tax;   

RP-ID  :  R40411
RP-ID  :  R40411_2010Jun18

美国|英语

来源: UNT Digital Library

【 摘 要 】

One provision of the 1913 individual income tax that generated a great deal of confusion was the taxation of income from the sale of property (i.e., capital gains income). This initial confusion has led to almost 100 years of legislative debates over capital gains. Beginning in 1922 capital gains were first subject to lower tax rates than ordinary income. This preferential treatment has continued throughout most of the history of the income tax. Proposals dealing with the taxation of capital gains have ranged from the outright elimination of capital gains taxation to the reduction of capital gains tax rates for certain classes of taxpayers to the elimination of the preferential tax treatment. This report discusses the manner in which capital gains are taxed, including rates and revenue figures. It also examines various economic issues regarding such taxes.