Paul L. Caron

Tuesday, February 13, 2007

Treasury Data Show Surge in Capital Gains

Treasury_2The Treasury Department's Office of Tax Policy has updated two reports to include 2004 data:

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 12:56:29 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 6:08:25 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 8:48:51 PM