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Publication Date: December 1984
Publisher: Heritage Foundation (Washington, D.C.)
Author(s): Bruce Bartlett
Research Area: Banking and finance
Keywords: Taxes
Type: Report
Abstract:
The taxation of capital gains is among the most controversial issues in public finance. It is likely to become more so as the Treasury Department's recent tax reform proposal is scrutinized. Under the Treasury plan, capital gains would be taxed at ordinary income rates, raising the maximum marginal tax rate on long-term capital gains from the current 20 percent to 35 percent. Such gains would be indexed to inflation so that taxes would be paid only on gains that exceeded the inflation rate.