tag:blogger.com,1999:blog-2836339018444123313.post7457681500106773874..comments2023-09-14T21:37:39.544-07:00Comments on U.S. Budget and Economy: Do Capital Gains Tax Cuts Increase Revenue?R Davishttp://www.blogger.com/profile/00681139511824861368noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2836339018444123313.post-1099751405050860302011-03-05T09:33:27.114-08:002011-03-05T09:33:27.114-08:00The issue is the elasticity of taxable income or, ...The issue is the elasticity of taxable income or, in the case of capital gains, the elasticity of realizations (if the tax rate rises, there is less trading). In the case of overall taxable income several studies estimate that it may be close to unity (1) for those in the top 1 percent. If so, a higher tax rate would not yield revenue and a lower rate would not lose revenue. When it comes to capital gains, more than a dozen studies find Entin's conclusion correct. I survey some of this literature in a recent paper: http://www.cato.org/speeches/reynolds_FMF092608.pdfAlan Reynoldshttp://www.cato.org/people/alan-reynoldsnoreply@blogger.comtag:blogger.com,1999:blog-2836339018444123313.post-84962473630961690442011-02-02T10:33:43.561-08:002011-02-02T10:33:43.561-08:00Reed, I see that I am the only one to have dug dee...Reed, I see that I am the only one to have dug deeply enough to find your excellent commentary on this issue. Thanks for making the effort.<br /><br />Alan HamerstromUnknownhttps://www.blogger.com/profile/13309763875747259241noreply@blogger.com