February 13, 2007
Treasury Data Show Surge in Capital Gains
The Treasury Department's Office of Tax Policy has updated two reports to include 2004 data:
- Capital Gains and Taxes Paid on Capital Gains for Returns with Positive Net Capital Gains, 1954-2004
- Long-Term Capital Gains and Taxes Paid on Long-Term Capital Gains, 1977-2004
The Treasury data paint a remarkable picture, with capital gains realizations and receipts continuing to surge after the reduction in the top rate from 28% to 20% in May 1997 and to 15% in May 2003:
In 2004, the first full year of the 15% top rate, capital gains realizations increased to $466.2 billion (from $299.8 billion in 2003), and capital gains tax receipts increased to $66.2 billion (from $44.9 billion in 2003).
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I think it would be neat to know the gross proceeds from the asset sales, because that would represent capital redeployed instead of locked in. As I noted in an update at my post today, I would expect that it's a multiple of each year's reported gains. I don't see how to get that from the IRS links you provided, but I would think the IRS has it somewhere, because gross proceeds have to be reported on one of those nasty year-end forms (I think it's one of the 1099 types).
Posted by: Tom Blumer | Feb 13, 2007 3:56:29 PM
So much for the complaints about "tax cuts for the rich." A rising tide lifts all boats, as JFK explained, at least so long as the tax man doesn't sponge up all the water.
Posted by: Jake | Feb 13, 2007 9:08:25 PM
This may simply be a result of the housing boom. What is the average house price in the early 2000s as compared to the early 1990s?
Posted by: am | Feb 13, 2007 11:48:51 PM