MM&K Research: Does Capital Gains Tax Hurt The Economy?

Some argue that taxes are a burden on the economy whereas others argue that for problems the market cannot solve, taxes are needed to fill the gap. Thus the following report contains MM&K research modelling the relationship between the UK’s Capital Gains Tax and various measures of economic health like GDP, savings, investment, etc. We found intriguing results, such as though Capital Gains Tax appeared to hurt GDP, targeting higher earnings seemed to hurt GDP less; or we found that Capital Gains Tax appears to cause people to save less money counter to the “lock-in effect” criticism.

Our full findings are available for free download. To obtain your copy please fill in the form below.

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