Capital gains tax rates, stock markets, and growth
T Kravitz, L Burman - Tax Notes, 2005 - urban.org
The Jobs and Growth Tax Relief Reconciliation Act of 2003 temporarily reduced the
maximum long-term capital gains statutory tax rate from 20 percent to 15 percent, the lowest
level since the Great Depression. The Senate Finance Committee is considering extending
the reduced rates past their scheduled 2008 expiration, in part because of concern about the
effect on the stock market of allowing the rates to increase. Tax rates affect the after-tax rate
of return, which in turn affects stock prices. But tax rates are only one factor in the after-tax …
maximum long-term capital gains statutory tax rate from 20 percent to 15 percent, the lowest
level since the Great Depression. The Senate Finance Committee is considering extending
the reduced rates past their scheduled 2008 expiration, in part because of concern about the
effect on the stock market of allowing the rates to increase. Tax rates affect the after-tax rate
of return, which in turn affects stock prices. But tax rates are only one factor in the after-tax …