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Research report

Capital Gains Tax Rates, Stock Markets, and Growth

Troy Kravitz, Leonard E. Burman
November 7, 2005
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Abstract

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 Area

Individual Taxes Federal Budget and Economy
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Meet the Experts

  • Troy Kravitz
  • Leonard E. Burman
    Institute Fellow
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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