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.