Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98838
Authors: 
Jacob, Martin
Year of Publication: 
2014
Series/Report no.: 
Arqus-Diskussionsbeiträge zur quantitativen Steuerlehre 169
Abstract: 
This paper studies the cross-base tax elasticity of capital gains realizations to labor income taxes when capital gains are taxed at a separate proportional tax rate. Using a longitudinal panel of over 265,000 individuals in Sweden, this paper shows in a regression kink design that labor income taxes affect capital gains at the extensive and intensive margins. An increase in the marginal labor income tax rate increases the likelihood of realizing capital gains and the amount of realized capital gains. One implication of this result is that the excess burden of labor income taxation is affected by cross-base tax elasticities.
Subjects: 
Capital Gains
Cross-Base Elasticity
Income Taxes
JEL: 
H21
H24
Document Type: 
Working Paper

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