Taxes on Investment Income Remain Too High and Lead to Multiple Distortions
Summary
Although rates are lower than in the past, the combination of the corporate and personal tax rates still imply high marginal tax rates on capital income. Martin Feldstein argues that such high tax rates hurt the economy even if saving rates are not sensitive to rates of return, and examines the various ways in which capital taxes distort other aspects of economic activity.Recommended Citation
Feldstein, Martin
(2006)
"Taxes on Investment Income Remain Too High and Lead to Multiple Distortions,"
The Economists' Voice:
Vol. 3
:
Iss.
6, Article 5.
Available at: http://www.bepress.com/ev/vol3/iss6/art5
Readers' Reactions
Henning Bohn, Letter: How High Is the Top Tax Rate on U.S. Capital Gains? (June 2006)