NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Tax Evasion and Capital Gains Taxation

James M. Poterba

NBER Working Paper No. 2119 (Also Reprint No. r0933)
Issued in 1987
NBER Program(s):   PE

This paper uses time-series data to investigate how changes in capital gains tax rates affect taxpayer compliance. It finds that a one percent increase in the marginal tax rate reduces voluntary compliance by between one half and one percent. These results confirm the findings of previous studies based on individual household data. They also suggest that at least one quarter of the observed capital gain realization response to changes in marginal tax rates is due to changes in reporting behavior, rather than portfolio behavior.

download in pdf format
   (108 K)

email paper

This paper is available as PDF (108 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2119

Published: Poterba, James M. "Tax Evasion and Capital Gains Taxation," American Economic Review, Vol. 77, No. 2, (May 1987), pp. 234-239. citation courtesy of

Users who downloaded this paper also downloaded these:
Engel and Hines w6903 Understanding Tax Evasion Dynamics
Fisman and Wei w8551 Tax Rates and Tax Evasion: Evidence from "Missing Imports" in China
Poterba and Weisbenner w6616 Capital Gains Tax Rules, Tax Loss Trading and Turn-of-the-Year Returns
Poterba w2832 Venture Capital and Capital Gains Taxation
Auerbach, Burman, and Siegel w6399 Capital Gains Taxation and Tax Avoidance: New Evidence from Panel Data
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us