Agersnap, Ole; Zidar, Owen - 2022
This paper uses a direct-projections approach to estimate the effect of capital gains taxation on realizations at the … elasticity of revenues with respect to the tax rate over a ten-year period is -0.5 to -0.3, indicating that capital gains tax … federal tax revenue. Our long-run estimates yield revenue-maximizing capital gains tax rates of 38 to 47 percent …