Knowledge Tree
Relations (1)
cross_type 2.00 — strongly supporting 3 facts
The Congressional Budget Office analyzes the economic impact of capital gains, specifically estimating the revenue loss from preferential tax rates on them [1] and their contribution to total tax expenditure costs [2]. Furthermore, the agency evaluates how repealing these specific tax treatments would affect the national debt [3].
Facts (3)
Sources
How the Government Subsidizes Wealth Inequality americanprogress.org 3 facts
claimRepealing step-up in basis and low tax rates for capital gains and dividends would keep the national debt on a downward path as a share of GDP through the end of the five-year budget window analyzed by the Congressional Budget Office.
measurementThe Congressional Budget Office (CBO) estimated that the total 10-year cost for major tax expenditures, including step-up in basis and reduced rates on capital gains and dividends, was $1.984 trillion from 2014 to 2023.
measurementThe nonpartisan Congressional Budget Office estimates that the tax expenditure for low rates on capital gains and dividends will cost the federal government $1.34 trillion in revenue over the next 10 years.