Skip to main content
  • Experts
  • Events
  • Briefing Book
  • Resources
  • About
  • Contact
  • Support
  • Fiscal Facts
Twitter
Facebook
Logo Site
  • Topics
    • Individual Taxes
    • Business Taxes
    • Federal Budget and Economy
    • State and Local Issues
    • Campaigns, Proposals, and Reforms
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Features
Research report

Investor Responsiveness to Capital Gains Taxes During the Great Recession

Timothy Dowd, Robert McClelland, Jacob A. Mortenson
September 10, 2019
Download PDFPrint
Share

Primary tasks

  • Overview(active tab)
  • Full Report

Abstract

This paper uses a large panel of transaction-level capital asset sales data to investigate whether tax responsiveness varies with economic conditions. We estimate the tax elasticity associated with a large notch in the capital gains tax schedule, when the tax treatment changes from higher, ordinary income tax rates to lower, preferential tax rates. We estimate this elasticity for each year from 2007 to 2012. Surprisingly, these elasticities were highest during the throes of the financial panic.

Research Area

Business Taxes Tax rates (business) Federal Budget and Economy Economic effects of tax policy Individual Taxes Capital gains and dividends
To reuse content from the Tax Policy Center, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

Meet the Experts

  • Timothy Dowd
  • Robert McClelland
    Senior Fellow
  • Jacob A. Mortenson
Research report

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

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
  • Donate Today
  • Topics
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Privacy Policy
  • Newsletters
Twitter
Facebook
  • © Urban Institute, Brookings Institution, and individual authors, 2022.