Abstract

Taxing the Consumption of Capital Gains

Calvin H. Johnson
University of Texas at Austin School of Law

Virginia Tax Review, Vol. 28, No. 477, 2009
U of Texas Law, Law and Econ Research Paper No. 163

Abstract:
This piece traces the history of the capital gain concept, and then the policy arguments for a lower rate on capital gains, to argue for an express requirement that the lower rate for capital gains be available only if the gains are reinvested. Consumed capital gain, the Article argues, is not real capital gain within the original understanding or tax policy arguments. Indeed since capital gain is available for consumption, a viable alternative is to repeal the capital gain preference and engineer investment tax incentives to the front end of investment.

Accepted Paper Series

Date posted: October 30, 2009 ; Last revised: November 06, 2009

Suggested Citation

Johnson, Calvin H., Taxing the Consumption of Capital Gains (2009). Virginia Tax Review, Vol. 28, No. 477, 2009; U of Texas Law, Law and Econ Research Paper No. 163. Available at SSRN: http://ssrn.com/abstract=1496573

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Contact Information

Calvin Harsha Johnson (Contact Author)

University of Texas at Austin School of Law ( email )

727 East Dean Keeton Street
Austin, TX 78705
United States
512-232-1306 (Phone)
512-232-2399 (Fax)