Taxing Capital Income: Effective Marginal Tax Rates Under 2014 Law and Selected Policy Options.

摘要

The federal tax treatment of capital income affects investment incentives, both for the amounts invested and for allocations among assets. When tax rates are high, investors require higher before-tax rates of return and thus forgo investments with lower returns that they otherwise would have made. Current law produces significant variations in the taxation of capital income from different investments, thus leading investors to require higher before-tax rates of return on some investments than on others. Those differences reduce economic efficiency, the extent to which resources are allocated to maximize before-tax value.