Capital gains top mtr federal individual income tax

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Unformatted text preview: ity is very large but long-term elasticity is certainly much smaller 10 US Top MTR ordinary income vs. capital gains Top MTR (Federal Individual Income Tax) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% Top MTR 10% Top MTR (capital gains) 10% 0% Source: statistics computed by the author 2008 2003 1998 1993 1988 1983 1978 1973 1968 1963 1958 1953 1948 1943 1938 1933 1928 1923 1918 1913 0% US Top 0.1% Pre- Tax Income Share and Composi:on 12% Capital Gains 10% Capital Income Business Income 8% Salaries 6% 4% Source: Piketty and Saez, 2003 updated to 2011. Series based on pre-tax cash market income including or excluding realized capital gains, and always excluding government transfers. 2011 2006 2001 1996 1991 1986 1981 1976 1971 1966 1961 1956 1951 1946 1941 1936 1931 1926 1921 0% 1916 2% Inter-Temporal Substitution: Stock-Options Goolsbee JPE’00 analyzes CEO pay around the 1993 Clinton top tax rate increase [from 31% in 1992 to 39.6% in 1993 announced in late 1992] on executive pay Finds a strong re-timing response through stock-option exercise (executive can choose the timing of their stock-option exercises) ⇒ Large short-term response due to re-t...
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This note was uploaded on 01/23/2014 for the course ECON 131 taught by Professor Karp during the Spring '07 term at University of California, Berkeley.

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