Public Policy Brief No. 32 | August 1997

What’s Missing from the Capital Gains Debate?

Real Estate and Capital Gains Taxation

The recent enactment of a capital gains tax cut resulted, according to the authors, from the absence of a true appreciation or consideration of the real beneficiaries of such a cut, its probable actual effects, the distinction between productive and nonproductive sources of capital gains (two-thirds of capital gains accrue to real estate, which is a fixed, nonproductive asset), and distortions in our current income accounting system (which shield most real estate income from taxation). The across-the-board cut, which treats real estate appreciation and true capital gains as the same, is a giveaway to real estate and will steer capital and entrepreneurial resources to a search for unearned income.

Associated Program:
Michael Hudson Kris Feder

Publication Highlight

Working Paper No. 900
Functional Finance
A Comparison of the Evolution of the Positions of Hyman Minsky and Abba Lerner
Author(s): L. Randall Wray
January 2018

Quick Search

Search in: