Domestic Public Policy

The Consequences of Taxing the Capital Gains of Millionaires

Grant Year: 2021

Robert McClelland and Melissa Favreault will examine how changes in the capital gains tax rate affect taxpayer decisions to realize gains and what those decisions mean for tax revenues. They will analyze data from a panel of all individual tax returns filed since 1996 to measure how often taxpayers have earnings in excess of $1 million, and then assess how those taxpayers responded to changes in the tax treatment of capital gains. The project’s findings will appear in a paper and a policy brief.

Urban Institute Domestic Public Policy