Permanent Versus Transitory Tax Effects and the Realization of Capital Gains

摘要: Recent empirical work on captial gains implies that realizations are highly sensitive to marginal tax rates. Because they based cross-section data, however, these estimates cannot distinguish between permanent responses rate changes and the timing of take advantage normal fluctuations in any individual's rates over time. The purpose this paper is transitory from effects by analyzing panel data for taxpayers. Controlling income other variables, suggest both effects, although effect not significant all cases.