What's Missing from the Capital Gains Debate? Real Estate and Capital Gains Taxation

Public Policy Brief No. 32

Posted: 12 May 1998

See all articles by Kris Feder

Kris Feder

Bard College - The Levy Economics Institute

Michael Hudson

University of Missouri at Kansas City - Department of Economics ; Bard College - The Levy Economics Institute

Date Written: February 1997

Abstract

The recent enactment of a capital gains tax cut resulted, according to Hudson and Feder, from the absence of a true appreciation or consideration of the real beneficiaries of such a cut, its probable actual effects, the distinction between productive and nonproductive sources of capital gains (two-thirds of capital gains accrue to real estate, which is a fixed, nonproductive asset), and distortions in our current income accounting system (which shield most real estate income from taxation). The across-the-board cut, which treats real estate appreciation and true capital gains as the same, is a giveaway to real estate and will steer capital and entrepreneurial resources to a search for unearned income.

JEL Classification: H21

Suggested Citation

Feder, Kris A. and Hudson, Michael, What's Missing from the Capital Gains Debate? Real Estate and Capital Gains Taxation (February 1997). Public Policy Brief No. 32, Available at SSRN: https://ssrn.com/abstract=72508

Kris A. Feder (Contact Author)

Bard College - The Levy Economics Institute

Annandale-on-Hudson, NY 12504-5000
United States

Michael Hudson

University of Missouri at Kansas City - Department of Economics ( email )

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504
United States

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