[ancient_geezer]

Sorry. Capital gains taxes paid are subtracted from income when determining savings.

That is what I said, personal savings is with respect to after tax income, (i.e. discretionary income.)

Are you sure capital gains are included?

No, looking over NIPA tables it does not appear to be included in disposable income.

Seeing that most of such sales are largely re-invested in like instruments it is not clear that one could reasonable include such as income as much as it would represent appreciation of old assets. Certainly it is not classifiable as current production income in the GDP sense. So you are probably correct.

Savings under NIPA measure appears to best be defined as that which is left after taxes and consumption out of current production income.

[Toddsterpatriot]

Certainly it is not classifiable as current production income in the GDP sense. So you are probably correct.

Thanks. That's what I thought. So the tax is subtracted but the gain is not added. I wonder if the savings rate would be positive if gains were added?