Taxation of Capital Gains: A Review of the Main Issues

Author/Editor:

Krister Andersson

Publication Date:

October 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 1991/103

Subject:

Capital gains tax Income and capital gains taxes Income tax systems Inflation National accounts Personal income Prices Taxes

English

Publication Date:

October 1, 1991

ISBN/ISSN:

9781451948042/1018-5941

Stock No:

WPIEA1031991

Pages:

29

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