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Proposed capital-gains tax hike revives long-running debate

President Biden's focus on capital-gains taxes has highlighted concerns about the role of taxation in economic growth. “A rate increase this large would be expected to slow long-term growth. It’s not going to slow it by a substantial amount but I don’t think it’s insignificant,” public finance fellow John Diamond told the Wall Street Journal. “I don’t think it’s a story of just hey, we’re taxing the rich and no one else gets hurt by this.”

Diamond is the Edward A. and Hermena Hancock Kelly Fellow in Public Finance.