Capital Income Taxation: Reframing the Debate

AEI Economic Perspectives, July 2013

10 Pages Posted: 26 Jul 2013

See all articles by Alan D. Viard

Alan D. Viard

American Enterprise Institute

Date Written: July 23, 2013

Abstract

Although capital income taxes penalize saving and slow long-run growth, the federal tax system imposes multiple such taxes. Seven increases in capital income taxes took effect at the beginning of 2013, and President Obama’s 2014 budget plan proposes further increases. In upcoming decades, rising revenue needs fueled by entitlement growth will create pressure to further expand capital income taxation despite its negative economic effects. Opponents of capital income taxation must reframe the policy debate by explaining the economic disadvantages of capital income taxes and proposing alternative budgetary measures that maintain tax fairness.

Suggested Citation

Viard, Alan D., Capital Income Taxation: Reframing the Debate (July 23, 2013). AEI Economic Perspectives, July 2013, Available at SSRN: https://ssrn.com/abstract=2298156

Alan D. Viard (Contact Author)

American Enterprise Institute ( email )

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