Would you favor increasing capital gains taxes even if it reduces govt revenue?

[krazen1211]

You all speak as if it's a fact taxing earned and unearned income (capital gains) at the same rates will decrease revenue. Why don't we try it and find out?

We have in the past.

When and where is the evidence?

Capital gains revenues, 1985, 86, 87, 88.

http://rsc.jordan.house.gov/UploadedFiles/pb_070208_capitalgainsrevenue.pdf

People executed their gains under the old tax rates and then revenues dropped for a decade.

[krazen1211]

That's not even what your chart shows? It shows capital gains tax revenue increasing from 1977 to 1987 with the lower rate (with a one year spike and drop in 1986/87) and increasing from 1987 to 1997 with a higher rate (with a dip in the mid 90s).

And those figures don't even seem to be adjusted for inflation...

Uh, you just restated what I said. After the 1986 tax increase, capital gains revenues fell to a lower level and stayed there for an entire decade. Inflation only hurts your argument.