TY  - RPRT
        AU  - Lavecchia, Adam M.
AU  - Tazhitdinova, Alisa
        TI  - Permanent and Transitory Responses to Capital Gains Taxes: Evidence from a Lifetime Exemption in Canada
        PY  - 2021/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14331
        UR  - https://www.iza.org/publications/dp14331
        AB  - 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.
        KW  - avoidance
KW  - real responses
KW  - capital gains tax
KW  - re-timing
        ER  -