Taxation of Capital Gains: A Review of the Main Issues

Krister Andersson

No 1991/103, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews the main issues that needs to be addressed in the taxation of capital gains. The main focus of the paper is on the tax treatment of capital gains in the United States. The impact of inflation on asset values and the taxation of gains have led to calls for an inflation-adjusted taxation of capital gains. Others have called for the exclusion of a part of the nominal gains from taxation. This paper argues that if the exclusion method is used, the exclusion rate should increase as the holding period gets longer.

Keywords: WP; capital gain; income; yield; tax rate; tax treatment; nominal rate; capital gains tax tax rate; inflation rate; taxable income; Capital gains tax; Personal income; Income tax systems; Income and capital gains taxes; Inflation (search for similar items in EconPapers)
Pages: 29
Date: 1991-10-01
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:1991/103

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