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Center for Public Finance



The Economic Effects of Proposed Changes to the Tax Treatment of Capital Gains

John W. Diamond

The Economic Effects of Proposed Changes to  the Tax Treatment of Capital Gains.

In this working paper, the author examines the economic effects of enacting a proposal by the Biden administration to tax long term capital gains at ordinary income tax rates for those with taxable income above $1 million and tax unrealized gains at the time of death for single (joint) filers with more than $1 million ($2 million) in unrealized gains.

A similar version of the report was prepared with the financial support of the Center for Freedom and Prosperity Foundation.