Update: June 14, 2011

The Four Flaws of a Capital Gains Income Tax Cut

Because nothing in the legislature is truly dead until adjournment sine die, Oregonians must remain vigilant of any effort to cut the tax rate on income from capital gains. Several legislative proposals exist to grant preferential treatment to income generated from the sale of assets such as stocks, bonds and real estate.

OCPP's latest report examines why cutting the income tax on capital gains fails on four fundamental levels:

(1) It favors speculators over workers and favors the rich over the rest.

(2) It's ineffective as a means to attract investment, as proponents argue.

(3) It's unnecessary, because Oregon's economy already tends to outperform the nation as a whole. Indeed, it's unnecessary to retain capital gains taxpayers, as more taxpayers with capital gains income move to Oregon than move out.

(4) It's irresponsible, as it would undermine Oregon's ability to save for rainy days and fund vital public services.

Read the executive summary of The Four Flaws of a Capital Gains Income Tax Cut: It creates favoritism, it's ineffective, it's unnecessary and it's irresponsible. Download a copy of the full report(PDF).