Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Do Low Capital Gains Taxes Spur Economic Growth?
Ezra Klein of the Washington Post recently posted an interesting piece oncapital gains taxation. He reviews the empirical evidence that capital gains tax rates have influenced economic growth rates -- there isn't any -- and discusses the economic reasons why this is the case. Basically his case is that the economic benefits of low capital gains tax rates are potentially counter-balanced by the economic distortions created by the incentive to reengineer other income into capital gains tax rates. The article can be read at:
Klein does not discuss the economic case we have made that low capital gains tax rates also encourage the consumption of capital...
Bloomberg spins falling Case Shiller numbers as a positive trend
This morning, S&P/Case-Shiller released their data for February sales and resales of the same homes. Bloomberg News spins these numbers as a positive sign (Oil rises as Case-Shiller report shows improvement). Their story begins:
The actual data is graphed below (after dividing by the CPI to subtract inflation):
About 1 year ago, we wrote a commentary for the American Thinker called House Prices in Free Fall. We predicted that house prices would continue to fall. Specifically:...
Dems and Republicans Should Get the Tax Treatment of Capital Gains Right
Republicans and Democrats in the House of Representatives and the Senate have little understanding of the nature of capital gains and losses and their appropriate treatment in a system that imposes a progressive individual income tax and a corporate income tax and in which proprietorships, partnerships and corporations are subject to different tax treatments. Republicans advocate zero tax on capital gains and believe that corporate dividends are subject to double taxation, once by the corporation and again by the personal income tax. They believe this justifies a zero tax on capital gains and little or no tax on dividends under the personal income tax. Here is a look at the current treatment of capital gains and what we recommend as the appropriate tax treatment.
From 2008 – 2012, long-term capital gains on assets held more than one year were taxed at a zero rate in 10 and 15% income brackets. Those in the 25-35% income tax brackets were taxed at 15%. Short-term capital gains (on assets held less than one year), were taxable at ordinary rates. Democrats argue for higher rates. The president proposed for 2013 a long-term rate of 10% instead of a zero rate in the two lowest income tax brackets and a 20% rate in the higher brackets. Capital losses offset capital gains and are limited to a deduction $3000. Republicans usually argue for a zero rate on capital gains.What is the appropriate treatment? ...
Here is a selection:
To read it, go to: http://www.americanthinker.com/2011/04/house_prices_in_free_fall.html
5.4% tax surcharge on rich in House Health Care Bill would apply to capital gains & dividends
On November 12, the Wall Street Journal reported that the version of the Health Care bill that passed the House would result in a 69% hike in the capital gains tax rate because it would apply to adjusted gross income (which includes dividend and capital gains income) and would coincide with the capital gains rate automatically going up from 15% to 20% with the expiration of the Bush tax cuts in January 2011.
Economy - Long Term
Economy - Short Term
Real Estate Taxation
Journal of Economic Literature:
Atlantic Economic Journal: