Nuremberg Research Seminar in Economics on 14 April 2021 – Start: 16:45 (!!)
You are invited to join the weekly Nuremberg Research Seminar in Economics on 14 April 2021 at 16:45 (!!). The seminar will be held via Zoom. Alisa Tazhitdinova (UC Santa Barbara) will be talking about “Permanent and Transitory Responses to Capital Gains Taxes: Evidence from a Lifetime Exemption in Canada”.
Please find below the abstract:
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.