Permanent and Transitory Responses to Capital Gains Taxes : Evidence from a Lifetime Exemption in Canada
Using panel data on a 20% random sample of Canadian taxpayers, we study behavioral responses to the cancellation of a lifetime capital gains exemption that resulted in increased capital gains taxation for some individuals. The unique setting allows us to distinguish between short-term avoidance responses and permanent responses to capital gains taxes. We show that the exemption did not change the number of taxpayers reporting positive capital gains, and thus unlikely resulted in increased participation in capital markets. However, the exemption cancellation slightly increased capital gains realizations of the existing traders
Year of publication: |
[2021]
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Authors: | Lavecchia, Adam ; Tazhitdinova, Alisa |
Publisher: |
[S.l.] : SSRN |
Subject: | Kanada | Canada | Wertzuwachssteuer | Capital gains tax | Steuervergünstigung | Tax incentive | Steuerwirkung | Tax effects | Panel | Panel study |
Saved in:
freely available
Extent: | 1 Online-Ressource (71 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 11, 2021 erstellt |
Other identifiers: | 10.2139/ssrn.3764126 [DOI] |
Classification: | H24 - Personal Income and Other Nonbusiness Taxes and Subsidies ; H31 - Household ; g51 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013241994