Tax Policy Center

capital gains

Business Taxes: TaxVox

Indexing Capital Gains For Inflation Addresses A Real Problem But Ignores Existing Law

The idea of indexing capital gains for inflation is getting a lot of attention these days. Larry Kudlow, who heads the White House National Economic...
August 22, 2018C. Eugene Steuerle
: TaxVox

Indexing Capital Gains Could Both Reduce Lock-In and Harm the Economy

In response to my post attempting to shoot down the Trump Administration’s trial balloon re capital gains indexation, a financial advisor wondered if I might...
August 3, 2018Leonard E. Burman
: TaxVox

Indexing Capital Gains via Regulations is Still a Bad Idea

The Trump Administration reportedly is thinking about using its executive authority to redefine capital gains so only returns from the sale of assets in excess...
July 31, 2018Leonard E. Burman
Campaigns, Proposals, and Reforms: TaxVox

What Should Republicans Include In Their Second Tax Bill?

The Trump Administration and some congressional Republicans, including Ways & Means Committee Chair Kevin Brady (R-TX), are promising Tax Bill 2.0 later this year—perhaps in...
June 7, 2018Howard Gleckman
Business Taxes: TaxVox

Eliminate The Deduction For Qualified Business Income And Require Most Firms To Be Taxed As Pass-Throughs

The most problematic provision of the Tax Cuts and Jobs Act (TCJA) may be its 20 percent deduction for qualified business income (QBI) of owners...
June 4, 2018Eric Toder
Business Taxes: TaxVox

Should Treasury Index Capital Gains?

National Economic Council chair Larry Kudlow reportedly wants the IRS to redefine capital gains to include only returns from the sale of assets in excess of inflation. Were it feasible, it would make sense to measure all income and expense in real terms. But indexing capital gains alone by executive fiat would make no sense. It would cut capital gains taxes by up to $20 billion a year for the richest Americans and open the door to a raft of new, inefficient tax shelters. And it would do all this without the approval of Congress.
May 10, 2018Leonard E. Burman
State and Local Issues: TaxVox

A Little-Publicized Incentive In The New Tax Law Could Become America’s Largest Economic Development Program

The Tax Cuts and Jobs Act included a new federal incentive—Opportunity Zones—to spur investment in poor and undercapitalized communities. These incentives could become the nation’s...
March 27, 2018Brett Theodos
Business Taxes: TaxVox

Raise the 15 Percent Tax Rate on Capital Gains To Boost Revenue In A Progressive Way

Republican leaders have several challenges to overcome before they can pass a big tax bill. Here are two: (1) They need revenue to pay for...
October 11, 2017Robert McClelland
Individual Taxes: TaxVox

Yes, Killing The ACA’s Investment Tax Now Would Make The Next GOP Tax Bill Easier. Here's Why

The chaos surrounding Senate efforts to replace the Affordable Care Act will prolong the debate over what Republicans will do about the nearly $1 trillion...
July 20, 2017Howard Gleckman
Campaigns, Proposals, and Reforms: TaxVox

Investors May Be Waiting For A Tax Cut To Sell But Congress Could Fix The Lock-In Problem

Federal tax receipts have been coming in more slowly than expected, according to the Congressional Budget Office . Through the first eight months of the...
June 16, 2017Steven M. Rosenthal