[Uncle Miltie]

Arthur Laffer laughs:

The lower the Capital Gains Tax Rate, the higher the revenues (Capital Gains Realizations) to the Treasury!

[Uncle Miltie]

And, to pre-answer an objection, of course it’s true that taxpayers change the nature of their income streams, and defer capital gains realizations depending on the tax climate.

Which kinda goes to show how incredibly sensitive the economy and its actors are to marginal tax rates, whether Capital Gains or Income Tax rates.

[ksen]

Ok, that’s a good illustration for capital gains . . . now do it again with marginal income tax rates. ;)