The Lock-In Effect of the Capital Gains Tax: Some Time Series Evidence / Joel Slemrod.

Format:

Book

Author/Creator:

Slemrod, Joel.

Feldstein, Martin, author.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0257.

NBER working paper series no. w0257

Language:

English

Subjects (All):

Capital gains tax.

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Lock-In Effect of the Capital Gains Tax

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1978.

Cambridge, Mass. : National Bureau of Economic Research, 1978.

Summary:

This study presents time-series evidence indicating that capital gains taxation reduces the realization of capital gains. The "lock-in" effect is detectable once we divide individuals into categories on the basis of how much recent capital gains tax in- creases have affected them. Since the tax law changes, those individeals who are affected have realized significantly ldss capital gains relative to those not affected. This analysis, in `ddition to evidence fpom cross-sectional research reported in Feldstein and Yitzhaki (1978) and Feldstein, Slemrod and Qitzhaki (1978),indicates that estimates of the tax revenue change resulting from a reduction in capital gains taxation based on the assumption of unchanged realized gains may be misleading.

Notes:

Print version record

July 1978.