Uses a portfolio-based general equilibrium model and empirical estimates from the literature to simulate the effects on tax revenue and economic efficiency of a fifteen percent maximum tax rate on capital gains.

Elaborates on the major disturbances to income producing real estate markets in the 1980's and describes a simple model that can be used to illustrate the effects of such disturbances. Interprets developments in the multifamily and office markets and considers the owner-occupied housing market.