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Maybe Art Laffer Was Right?

April 30, 2021
“When you tax something, you get less of it.” - Art Laffer

  • Biden’s proposed 43.8% cap gains tax rate would be the highest in US history (red line). What may be the outcome of this proposed policy change?
  • Maybe Art Laffer was right . . . note what happened to realized gains (green shading after the 1986 cap gains tax hike . . . they went down! Then, note what happened to realized gains in late1990’s and mid-2000’s when cap gains was cut . . . they surged.
  • History suggests, if you want more tax revenues from cap gains, cut the rate.

    Source: Wikipedia 

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