text:
The Nature Conservancy
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the charitable organization in the United States. For the Canadian organization, see The Nature Conservancy of Canada. For the former UK government organization, see Nature Conservancy (UK).
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (August 2010) (Learn how and when to remove this template message)
Founded
1951 (66 years ago) (1951)[1]
Headquarters
Arlington, Virginia, United States
Area served
Global
Method
Conservation by Design
Members
More than 1 million[3]
Key people
Mark R. Tercek (CEO)
Revenue
US$949 million (2013)[2]
Slogan
"Protecting nature. Preserving life"
Website
nature.org
The Nature Conservancy is a charitable environmental organization, headquartered in Arlington, Virginia, United States.
Its mission is to "conserve the lands and waters on which all life depends."[3] The Conservancy pursues non confrontational, pragmatic solutions to conservation's challenges working with partners including indigenous communities, businesses, governments, multilateral institutions, and other non-profits.[4]
The Conservancy's work focuses on the global priorities of Lands, Water, Climate, Oceans, and Cities.[5] Founded in Arlington, Virginia, in 1951, The Nature Conservancy now impacts conservation in 69 countries, including all 50 states of the United States. The Conservancy has over one million members, and has protected more than 119,000,000 acres (48,000,000 ha) of land and thousands of miles of rivers worldwide.[4] The Nature Conservancy also operates more than 100 marine conservation projects globally.[6] The organization's assets total $6.71 billion as of 2015.[7] The Nature Conservancy is the largest environmental nonprofit by assets and by revenue in the Americas.[8]
The Nature Conservancy rates as one of the most trusted national organizations in Harris Interactive polls every year since 2005.[9][10][11][12] Forbes magazine rated The Nature Conservancy's fundraising efficiency at 88 percent in its 2005 survey of the largest U.S. charities.[13] The Conservancy received a three-star rating from Charity Navigator in 2016 (three-star in 2015)[14] The American Institute of Philanthropy gives the Conservancy a B+ rating and includes it on its list of "Top-Rated Charities".[15]
The Nature Conservancy is led by President and CEO Mark Tercek, a former managing director at Goldman Sachs. He is the author of the Washington Post and Publisher’s Weekly bestselling book Nature’s Fortune: How Business and Society Thrive by Investing in Nature.[16] The Nature Conservancy's Chief Scientist is Australian Hugh Possingham, who was named to this position in 2016.[17] The current board chairman is Craig McCaw, the Chairman & CEO of Eagle River Inc. Other current members include former U.S. Senator Bill Frist, chairman of the Alibaba Group Jack Ma, and Chairman and Co-founder of The Bridgespan Group Thomas Tierney.[18]
Contents
[hide]
1 History
2 Approach
3 Featured project sites
4 Plant a Billion Trees campaign
4.1 Environmental benefits
4.2 Involvement in the community
4.3 Tree planting
4.4 History of the campaign
4.5 Partnerships
5 Criticism
5.1 Too close to business
5.2 Questionable resale
5.3 Animal rights
6 Publication
7 See also
8 References
9 External links
History[edit]
This section needs expansion. You can help by adding to it. (December 2016)
The Nature Conservancy at 2017 Capital Pride.
The Nature Conservancy developed out of an older organization known as the Ecological Society of America.[19] The latter society was founded in 1915 and two years later formed a Committee on Preservation of Natural Areas for Ecological Study, headed by Victor Shelford.[19][20] Whereas the organization's leadership until then had focused on promoting research, while officially remaining neutral, in the course of the 1930s Shelford and his colleagues increasingly sought to advocate for conservation.[19] The divide in viewpoints led the society to dissolve the committee, and, in 1946, Shelford and his colleagues formed the Ecologists' Union.[19][20] The latter group eventually took the name "The Nature Conservancy", in emulation of the British agency of that name, which pursued a mission of conserving open space and wildlife preserves. The Nature Conservancy was incorporated in the United States as a non-profit organization on October 22, 1951.[20]
Approach[edit]
The Nature Conservancy takes a scientific approach to conservation, setting goals that describe the results it wants to achieve for biodiversity. The Nature Conservancy sets both long-term and near-term goals for conserving the abundance and geographic distribution of critical species and ecological systems. The organization's overall goal is to ensure the long-term survival of all biodiversity on Earth.[21]
The Nature Conservancy works with all sectors of society including businesses, individuals, communities, partner organizations, and government agencies to achieve its goals. The Nature Conservancy is known for working effectively and collaboratively with traditional land owners such as farmers and ranchers, with whom it partners when such a partnership provides an opportunity to advance mutual goals.[22] The Nature Conservancy is in the forefront of private conservation groups implementing prescribed fire[23] to restore and maintain healthy ecosystems and working to address the threats to biodiversity posed by non-native and invasive plants and animals.[24]
The Nature Conservancy has pioneered new land preservation techniques such as the conservation easement and debt for nature swaps. A conservation easement is a way for land owners to ensure that their land remains in its natural state while capitalizing on some of the land's potential development value. Debt for nature swaps are tools used to encourage natural area preservation in third world countries while assisting the country economically as well: in exchange for setting aside land, some of the country's foreign debt is forgiven.[25][26]
The Conservancy believes that the private sector has an important role to play in advancing its conservation mission. The organization works to help businesses make better decisions, understand the value of nature, and ultimately protect it.[27] Among the companies it works with are: 3M/3M Foundation, Alcoa Foundation, AmazonSmile, AT&T, Avon, Bank of America, Barrick Gold, BHP Billiton, Cargill, Inc., Caterpillar/Caterpillar Foundation, The Coca Cola Company, Delta Air Lines, Discovery Channel: North America, Disney, The Dow Chemical Company, FEMSA, General Mills, Goldman Sachs, Harley-Davidson, IBM, JPMorgan Chase & Co., Lowe’s/Lowe’s Charitable and Educational Foundation, Microsoft, Oracle, Patagonia, PepsiCo Recycle for Nature, Swiss Re, UPS, Whole Foods Market.[28]
Featured project sites[edit]
Nature Conservancy of Tennessee's William B. Clark, Sr., Nature Preserve on the Wolf River at Rossville, Tennessee
The Nature Conservancy's expanding international conservation efforts include work in North America, Central America, and South America, Africa, the Pacific Rim, the Caribbean, and Asia.[29] Increasingly, the Conservancy focuses on developing global solutions at the intersection of nature’s and people’s needs. The solutions are areas where it aims to develop specific strategies and link them to its place-based work at the system scale.[30] Below are a few examples of such work:
The Nature Conservancy was instrumental in the creation in 2004 of the Great Sand Dunes National Park in Colorado. The Conservancy's efforts in China's Yunnan province, one of the most vital centers of plant diversity in the northern temperate hemisphere, serve as a model for locally based ecotourism with a global impact. The Nature Conservancy and its conservation partner, Pronatura Peninsula Yucatán, are working to halt deforestation on private lands in and around the 1.8 million acre (7,300 km²) Calakmul Biosphere Reserve, along the Guatemala–Mexico border. In November 2004, 370,000 acres (1,500 km²) of threatened tropical forest in Calakmul were permanently protected under a historic land deal between the Mexican federal and state government, Pronatura Peninsula Yucatán, four local communities and the Conservancy.[31]
The Nature Conservancy's programs in Idaho, Montana and Wyoming are working together to build partnerships and enhance the profile of the conservation needs in the Greater Yellowstone Ecosystem by supporting voluntary, private land conservation of important wildlife habitat. In 2007, the Nature Conservancy made a 161,000-acre (650 km2) purchase of New York forestland from Finch Paper Holdings LLC for $110 million, its largest purchase ever in that state.[30][32] In June 2008, The Nature Conservancy and The Trust for Public Land announced they reached an agreement to purchase approximately 320,000 acres (1,300 km2) of western Montana forestland from Plum Creek Timber Company (NYSE:PCL) for $510 million. The purchase, known as the Montana Legacy Project, is part of an effort to keep these forests in productive timber management and protect the area's clean water and abundant fish and wildlife habitat, while promoting continued public access to these lands for fishing, hiking, hunting and other recreational pursuits.[33][34][35] As a follow-on, in 2015 The Nature Conservancy made a $134 million transaction to purchase 165,073 acres – 257 square miles – of forests, rivers and wildlife habitat in the Cascade Mountain Range of Washington and in the Blackfoot River Valley in Montana. The Conservancy also acquired this land from Plum Creek, including 47,921 acres in the Yakima River Headwaters in Washington and 117,152 acres in the Lower Blackfoot River Watershed in Montana.[36][37]
In December 2015, The Nature Conservancy announced the finalization of the first ever debt swap in Seychelles aimed at ocean conservation. The new protected area increases the country’s marine protected waters from less than 1 percent to more than 30 percent including support for the creation of the second largest Marine Protected Area in the Western Indian Ocean.[38] The debt swap deal was made possible through a partnership with the Seychelles Ministry of Finance, support of debt-holding nations including France, and grants from private organizations led by the Leonardo DiCaprio Foundation.[39]
Financing for this effort was organized by The Nature Conservancy's impact investing unit called NatureVest.[40][41] NatureVest was created in 2014 with founding sponsorship from JPMorgan Chase & Co. with the stated goal of sourcing and putting to work at least $1 billion of impact investment capital for measurable conservation outcomes over three years.[42][43] For their work on the Seychelles debt restructuring, The Nature Conservancy and JPMorgan Chase were given the FT/ITC Transformational Business Award for Achievement in Transformational Finance[44] The award is given by the Financial Times and the World Bank's International Finance Corporation (IFC) for ground-breaking, commercially viable solutions to development challenges.[45]
Plant a Billion Trees campaign[edit]
The Nature Conservancy's Plant a Billion Trees campaign is an effort to restore 2,500,000 acres (10,100 km2) of land and plant one billion trees by 2025 in the Atlantic Forest of Brazil. Each donated dollar results in one planted tree in the Atlantic Forest.[46][better source needed]
Environmental benefits[edit]
The Plant a Billion Trees campaign has also been identified as a tool to help slow climate change, as the Atlantic Forest – one of the biggest tropical forests in the world – helps regulate the atmosphere and stabilize global climate. The reforestation of the Atlantic Forest has the capability to remove 10 million tons of carbon dioxide from the atmosphere every year. The Nature Conservancy states that this is equivalent to taking two million cars off the road. The Atlantic Forest's restoration could help to slow the process of climate change that is affecting the Earth.[citation needed]
The Nature Conservancy's Plant a Billion Trees campaign also aims to protect 10 critical watersheds in the Atlantic Forest that provide water and hydro power to more than 70 million people, create 20,000 direct jobs, and an additional 70,000 indirectly as part of this effort. The Plant a Billion Trees campaign is also associated with The Nature Conservancy's Adopt an Acre program, which consists of nine locations, including Brazil.[47][better source needed]
Involvement in the community[edit]
The Nature Conservancy also features e-cards from the Atlantic Forest, as well as video of the Atlantic Forest and detailed information about the seedlings on their website.[48] The website also features a news feed and an interactive map of the Atlantic Forest region in Brazil, as well as information on many of the plants, animals, and people that are impacted by the plight of the forest and who may benefit from its restoration.[48][better source needed]
Tree planting[edit]
The Nature Conservancy plants one tree in the Atlantic Forest of Brazil for each dollar donated by supporters.[citation needed] Some of the seeds being planted consist of:
Guapuruvu Tree (Schizolobium parahyba) – An indigenous plant of Atlantic Forest, this has one of the fastest growth rates of all the native species.
Golden Trumpet Tree (Tabebuia umbellate) – According to popular belief, when this tree's yellow blooms appear, no more frosts will occur. The wood of a Golden Trumpet Tree has the same fire rating as concrete and is denser than water. Illegal logging activity has grown due to this tree's growing popularity.
Ice-Cream Bean Tree (Inga edulis) – Leafy and abundant, this tree controls weeds and erosion. Its popular fruit is a long pod up to a few feet, containing a sweet pulp surrounding large seeds.
Capororoca Tree (Myrsine ferruginea) – Birds like the Rufous-bellied Thrush enjoy the fruit off of this tree.[46][better source needed]
History of the campaign[edit]
The Nature Conservancy launched the Plant a Billion Trees campaign in 2008 with a micro-site plantabillion.org that is affiliated but not hosted by The Nature Conservancy's website.
As a part of this launch, The Nature Conservancy pledged to plant 25 million trees as part of the United Nations Environment Program (UNEP)'s Billion Tree Campaign.[49][better source needed] This campaign encourages individuals and organizations to plant their own trees around the world and record this action on the website as a tally.
On Earth Day 2009, Disneynature's film Earth debuted, promising to plant a tree for every ticket sold to the film in its first week. This resulted in a donation of 2.7 million trees to the Plant a Billion Trees program.[50]
Partnerships[edit]
The Plant a Billion Trees campaign has followed The Nature Conservancy's approach of partnering with larger organizations (such as Disneynature, Planet Green, Penguin Books, Payless Shoesource, AT&T, Disney Worldwide Conservation Fund, and Visa) to leverage donations from supporters and increase efficiency and effectiveness of the campaign.[46][better source needed]
Penguin Classics sponsored a Penguin Walk[51] to benefit the Plant a Billion Trees Campaign on June 6, 2009 as well.[52]
Payless Shoesource sponsored the Plant a Billion Trees campaign[53][better source needed] by giving $1 to The Nature Conservancy for every Plant a Billion Trees reusable bag sold between April 13, 2009, and December 31, 2009 (sold at a retail value of $1.99) and $1 from each zoe&zac branded product sold between 4/13/09 and 5/4/09. Payless guaranteed a minimum total contribution of $100,000 in 2009 from these sales and the sales of other merchandise during 2009.
Panasonic has been involved by planting a tree for each customer who selects The Nature Conservancy in its "Giving Back" program.[49][better source needed]
Organic Bouquet donated ten percent for every flower and gift purchased during the month of April 2008 at www.organicbouquet.com/nature.[49][better source needed]
The Nature Conservancy and its scientists also work with other conservation organizations, local landowners, state and federal officials, agencies, and private companies to protect, connect, and buffer what is left of the Atlantic Forest.[49][better source needed]
Criticism[edit]
Over the years, The Nature Conservancy has faced a number of criticisms. They fall into the following main categories:
Too close to business[edit]
The Nature Conservancy has ties to many large companies, including those in the oil, gas, mining, chemical and agricultural industries.[54] Its Board of Directors currently includes the retired chairman of Duke Energy, and executives from Merck, HP, Google and several financial industry groups.[55] It also has a Business Council which it describes as a consultative forum that includes Bank of America, BP America, Cargill, Chevron, The Coca-Cola Company, The Dow Chemical Company, Duke Energy, General Mills, Royal Dutch Shell, and Starbucks Coffee Company.[56] The organization faced criticism in 2010 from supporters for its refusal to cut ties with BP after the Gulf oil spill.[57][58]
Writer and activist Naomi Klein has strongly criticized The Nature Conservancy for earning money from an oil well on land it controls in Texas.[59] Klein has also criticized The Nature Conservancy and other large environmental NGOs for their continued engagement with fossil fuel companies.[60]
Questionable resale[edit]
There have been allegations of The Nature Conservancy obtaining land and reselling it at a profit, sometimes to supporters,[61] who have then made use of it in ways which many perceived as being insufficiently environmentally friendly. The rationale for the resale has been that the profit allows The Nature Conservancy to increase its preservation of what the Nature Conservancy claims are more important locations.[62] However, the Conservancy does have a no-net-profit policy that has been in effect for years for all transactions of this type. It has ways of ensuring that its disbursements will offset any illicitly-generated revenues.[63]
Animal rights[edit]
Like many large environmental groups such as the Sierra Club and the World Wildlife Fund, the Conservancy has also been criticized for using hunting in its management policies. Retired General Norman Schwarzkopf, the Commander of coalition forces during the First Gulf War, and a member of the President's Conservation Counsel of the Conservancy, was also a member of the trophy hunting organization the Safari Club International.[64]

Publication[edit]
The organization publishes The Nature Conservancy magazine (ISSN 1540-2428; six issues per year).
See also[edit]
Earth sciences portal
Ecology portal
Environment portal
Sustainable development portal
Climate, Community & Biodiversity Alliance
List of environmental issues
List of environmental organizations
Natural capital
Natural environment
Natural landscape
Natural resource
Nature
Private protected area
Sustainability
Sustainable development
Timeline of environmental events
References[edit]
Notes
Jump up ^ Grove, Noel (December 1988). "Quietly Conserving Nature". National Geographic. 174 (6): 818–844.
Jump up ^ [1] Archived August 21, 2014, at the Wayback Machine.
^ Jump up to: a b "About The Nature Conservancy". Nature.org. January 23, 2014. Retrieved February 21, 2014.
^ Jump up to: a b "Non Profit Organization | About Us | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Global Environmental Issues | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Non Profit Organization | About Us | The Nature Conservancy". Nature.org. January 17, 2013. Retrieved February 2, 2013.
Jump up ^ "Our World : 2015 Annual Report" (PDF). Nature.org. Retrieved 2016-09-15.
Jump up ^ "The 200 Largest U.S. Charities List: Environment/Animal". Forbes. Retrieved February 21, 2014.
Jump up ^ "2008 Harris Poll". Harrisinteractive.com. Retrieved February 21, 2014.
Jump up ^ "2007 Harris poll". Harrisinteractive.com. Retrieved February 21, 2014.
Jump up ^ "2006 Harris poll". Harrisinteractive.com. Retrieved February 21, 2014.
Jump up ^ "2005 Harris poll". Harrisinteractive.com. Retrieved February 21, 2014.
Jump up ^ "Nature Conservancy". Forbes. Retrieved February 21, 2014.
Jump up ^ "Rating for The Nature Conservancy". Charity Navigator. Retrieved 2016-09-15.
Jump up ^ "Nature Conservancy | Charity Ratings | America's Most Independent Charity Watchdog". CharityWatch. Retrieved 2016-09-15.
Jump up ^ "Executive Team Members | The Nature Conservancy". Nature.org. 2012-05-31. Retrieved 2016-09-15.
Jump up ^ "Dr. Hugh Possingham Named Chief Scientist of The Nature Conservancy | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Board of Directors | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
^ Jump up to: a b c d Adams, Jonathan S. (2006). The Future of the Wild: Radical Conservation for a Crowded World. Boston: Beacon Press. ISBN 9780807085103. p. 50-51. The author is a conservation biologist and (as of 2016) a program director at the Nature Conservancy.
^ Jump up to: a b c "Our History". The Nature Conservancy. nature.org. Retrieved 2016-12-18.
Jump up ^ "Science-Based Approach | The Nature Conservancy". Nature.org. 2016-07-13. Retrieved 2016-09-15.
Jump up ^ "Partners in Conservation | The Nature Conservancy". Nature.org. 2016-06-23. Retrieved 2016-09-15.
Jump up ^ "Maintaining Fire's Natural Role | The Nature Conservancy". Nature.org. 2016-01-15. Retrieved 2016-09-15.
Jump up ^ "Explore our work to prevent Invasive Species | The Nature Conservancy". Nature.org. 2016-01-14. Retrieved 2016-09-15.
Jump up ^ "Conservation Easements | The Nature Conservancy". Nature.org. 2010-11-09. Retrieved 2016-09-15.
Jump up ^ "Investing in Nature for Sustainable Development" (PDF). Nature.org. Retrieved 2016-09-15.
Jump up ^ "Working with Companies | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Working with Companies - Companies We Work With | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Where We Work | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
^ Jump up to: a b "Global Solutions". Conservationgateway.org. Retrieved 2016-09-15.
Jump up ^ Adams, Lisa (November 13, 2004). "Plan would protect swath of Yucatán forest". San Diego Union-Tribune. Retrieved June 25, 2015.
Jump up ^ "The Nature Conservancy Purchases 161,000 acres in New York". The Land Report. Retrieved 2016-09-15.
Jump up ^ "Nature Conservancy News Room – The Forestl". Nature.org. Retrieved February 21, 2014.
Jump up ^ "Conservationists Go Big in Montana –Land&People | The Trust for Public Land". Tpl.org. 2006-06-12. Retrieved 2016-09-15.
Jump up ^ "The Montana Legacy Project — Northwest Connections". Northwestconnections.org. 2008-06-30. Retrieved 2016-09-15.
Jump up ^ "Forests for America's Future | The Nature Conservancy". Nature.org. 2016-01-15. Retrieved 2016-09-15.
Jump up ^ Marc Gunther. "Behind one of the Nature Conservancy's largest ever forest purchases | Guardian Sustainable Business". The Guardian. Retrieved 2016-09-15.
Jump up ^ "Seychelles to protect more than 400,000 square kilometers of Ocean - Reef Builders | The Reef and Marine Aquarium Blog". Reef Builders. 2016-03-18. Retrieved 2016-09-15.
Jump up ^ "LDF Supports First Ever Debt-for-Nature Swap in Seychelles - Leonardo DiCaprio Foundation : Leonardo DiCaprio Foundation". Leonardodicaprio.org. 2016-03-15. Retrieved 2016-09-15.
Jump up ^ "Seychelles Debt Restructuring | NatureVest". Naturevesttnc.org. 2014-06-20. Retrieved 2016-09-15.
Jump up ^ "Nature Conservancy Debt Swap to Finance Conservation in Seychelles | News | PND". Philanthropynewsdigest.org. 2015-02-26. Retrieved 2016-09-15.
Jump up ^ "About Us | NatureVest". Naturevesttnc.org. Retrieved 2016-09-15.
Jump up ^ "Why TNC and JPMorgan Chase are investing $1 billion in nature". GreenBiz.com. 2014-04-29. Retrieved 2016-09-15.
Jump up ^ [2][dead link]
Jump up ^ "FT/IFC Transformational Business Awards organised by FT Live". Live.ft.com. Retrieved 2016-09-15.
^ Jump up to: a b c "Plant A Billion Trees – one dollar at a time – with The Nature Conservancy". Plantabillion.org. Retrieved February 2, 2013.
Jump up ^ "Adopt an Acre – The Nature Conservancy". Support.nature.org. Retrieved February 2, 2013.
^ Jump up to: a b "Plant A Billion Trees – one dollar at a time – with The Nature Conservancy". Plantabillion.org. Retrieved February 22, 2014.
^ Jump up to: a b c d "Conservation & Green News | The Nature Conservancy". Nature.org. Retrieved February 2, 2013.
Jump up ^ "Disney joins forces with the nature conservancy to plant 2.7 million trees in conjunction with first week ticket sales for Disneynature's debut feature, 'Earth'" (PDF). Disney.go.com. April 29, 2009. Retrieved February 2, 2013.
Jump up ^ "Plant a Billion Trees – Penguin Classics – Penguin Group (USA)". Us.penguingroup.com. Retrieved February 2, 2013.
Jump up ^ "Payless Partners with the Plant a Billion Trees Campaign, Launches Eco-Friendly Line". StyleCaster. April 13, 2009. Retrieved February 2, 2013.
Jump up ^ "Customer Service – Payless Shoes". Payless ShoeSource. Retrieved February 2, 2013.
Jump up ^ "Working with Companies - Companies We Work With | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Board of Directors Member Profiles | The Nature Conservancy". Nature.org. Retrieved 2016-09-15.
Jump up ^ "Business Council | The Nature Conservancy". Nature.org. 2016-07-01. Retrieved 2016-09-15.
Jump up ^ "Nature Conservancy faces potential backlash from ties with BP". Washingtonpost.com. Retrieved 2016-09-15.
Jump up ^ "Reaching for a longer spoon". The Economist. 2010-06-03. Retrieved 2016-09-15.
Jump up ^ "Group Earns Oil Income Despite Pledge on Drilling". The New York Times. Retrieved 2016-09-15.
Jump up ^ Klein, Naomi (2013-05-01). "Time for Big Green to Go Fossil Free". The Nation. Retrieved 2016-09-15.
Jump up ^ The Chronicle of Philanthropy. October 18, 2007.
Jump up ^ Staff (June 14, 2003). "In Wake of Criticism, Nature Conservancy Changes Policies". The New York Times. Retrieved August 11, 2014.
Jump up ^ "Nature Conservancy". Undueinfluence.com. Retrieved 2016-09-15.
Jump up ^ "Schwarzkopf Shines at Safari Club International Life Members Breakfast". Thefreelibrary.com. Retrieved February 2, 2013.
Bibliography
Tercek, Mark R.; Adams, Jonathan (2013) "Nature's Fortune: How Business and Society Thrive by Investing in Nature". New York: Basic Books ISBN 978-0-465-03181-8.
Grove, Noel; with photographs by Stephen J. Krasemann (1992). Preserving Eden: The Nature Conservancy. New York City: Harry N. Abrams, Inc. ISBN 0-8109-3663-1.
Morine, David E. (1990). Good Dirt: Confessions of a Conservationist. Chester, Connecticut: Globe Pequot Press. ISBN 0-87106-444-8.
Birchard, Bill (2005). Nature's Keepers. San Francisco: Jossey-Bass (a Wiley imprint). ISBN 0-7879-7158-8.
Stephens, Joe; Ottaway, David B. (June 8, 2005). "Senators Question Conservancy's Practices: End to 'Insider' and 'Side' Deals by Nonprofit Organizations Is Urged". The Washington Post.
Stephens, Joe; Ottaway, David B. May 3, 2003). "Conservancy Scientists Question Their Role". The Washington Post.
Stephens, Joe; Ottaway, David B. (May 4, 2003). "$420,000 a Year and No-Strings Fund: Conservancy Underreported President's Pay and Perks of Office". The Washington Post.
Stephens, Joe; Ottaway, David B. (May 16, 2003). "Charity Hiring Lawyers to Try to Prevent Hill Probe". The Washington Post.
External links[edit]
Wikimedia Commons has media related to Nature Conservancy preserves.
nature.org, the organization's official website
Cool Green Science – The Conservation Blog of The Nature Conservancy
The Nature Conservancy – Plant a billion trees campaign
The Nature Conservancy's Conservation Data
Charity Navigator budget summary
Nature's Land Brokers Documentary produced by Idaho Public Television
The Nature Conservancy at SourceWatch
[hide]
v
t
e
Conservation of species
Conservation biology
Conservation behavior
Conservation dependent species
Conservation ethic
Conservation genetics
Conservation status
Ex-situ conservation
Extinction threshold
In-situ conservation
Latent extinction risk
Marine conservation
Species translocation
Threatened species
Conservation areas
Conservation designation
Conservation development
Conservation district
Conservation easement
Ecoregion conservation status
Environmental protection
Gap analysis
Habitat conservation
High conservation value area
Landscape-scale conservation
Marine protected area
National conservation area
Open space reserve
Riparian buffer
Roadless area conservation
Roadside conservation
Site-based conservation
Special Area of Conservation
Restoration
Assisted natural regeneration
Ecosystem restoration
Island restoration
Reforestation
afforestation
Rewilding
By taxa
Amphibians and reptiles
Birds
burrowing owls
raptors
Insects
bumblebees
butterflies
Land mammals
bats
bats 2
bears
cheetahs
cheetahs 2
gorillas
painted dogs
slow lorises
small cats
tigers
tigers 2
wolves
Marine
Antarctic seals
cetaceans
cetaceans 2
manatees
migratory sharks
salmon
sea otters
sea turtles
sturgeons
Plants
forests
fungi
medicinal plants
orchids
By country
Australia
Belize
Brazil
Hong Kong
Iceland
India
Bhopal
Ireland
Italy
New Zealand
Papua New Guinea
Uganda
United Kingdom
United States
Other
Biodiversity
Conservation agriculture
Conservation finance
Conservation grazing
Conservation management system
Conservation movement
Conservation officer
Conservation organisations
Conservation photography
Conservation psychology
Conservation refugee
Conspicuous conservation
De-extinction
Myth of superabundance
NatureServe conservation status
Planetary boundaries
Index of conservation articles
List of conservation issues
Category
Retrieved from "https://en.wikipedia.org/w/index.php?title=The_Nature_Conservancy&oldid=800868317"
Categories:
Nature Conservancy
Conservation organizations based in the United States
Environmental organizations based in the United States
Land trusts in the United States
Land trusts in Virginia
Forest conservation organizations
Water organizations in the United States
Non-profit organizations based in Arlington, Virginia
Organizations established in 1951
Scientific organizations established in 1951
1951 establishments in the United States
1951 in the environment
Nature Conservancy preserves
Hidden categories:
Webarchive template wayback links
All articles with dead external links
Articles with dead external links from September 2016
Articles needing additional references from August 2010
All articles needing additional references
Use mdy dates from February 2013
Use American English from August 2014
All Wikipedia articles written in American English
Pages using deprecated image syntax
Articles to be expanded from December 2016
All articles to be expanded
Articles using small message boxes
All articles lacking reliable references
Articles lacking reliable references from August 2010
All articles with unsourced statements
Articles with unsourced statements from August 2010
Commons category with local link different than on Wikidata
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
In other projects
Wikimedia Commons
Languages
Deutsch
Español
Français
Bahasa Indonesia
Nederlands
Português
中文
Edit links
This page was last edited on 16 September 2017, at 04:50.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view

values: mw-page-base noprint

values: mw-head-base noprint

attrs: id class style

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

attrs: href class title

values:
/wiki/The_Nature_Conservancy_of_Canada
mw-redirect
The Nature Conservancy of Canada

attrs: role class

values:
note
hatnote navigation-not-searchable

value: b

values: Help:Introduction to referencing with Wiki Markup/1

value: span

value: i

value: small

values: plainlinks metadata ambox ambox-content ambox-Refimprove

attrs: alt src width height data-file-width data-file-height

values: The Nature Conservancy: Protecting nature. Preserving life. The Nature Conservancy logo is copyright © 2007 The Nature Conservancy

values:
/wiki/Arlington,_Virginia
mw-redirect
Arlington, Virginia

values:
/wiki/Conservation_ethic
mw-redirect
Conservation ethic

values:
/wiki/1,000,000_(number)
mw-redirect
1,000,000 (number)

values:
nofollow
external text
http://nature.org

values:
/wiki/Harris_Interactive
mw-redirect
Harris Interactive

values: plainlinks metadata ambox mbox-small-left ambox-content

values:
/wiki/Invasive_plants
mw-redirect
Invasive plants

values:
/wiki/Great_Sand_Dunes_National_Park
mw-redirect
Great Sand Dunes National Park

values:
/wiki/Peninsula_Yucat%C3%A1n
mw-redirect
Peninsula Yucatán

values: Edit section: Plant a Billion Trees campaign

values: This claim needs references to better sources. (August 2010)

values: noprint Inline-Template noprint Template-Fact

values: This claim needs references to reliable sources. (August 2010)

values:
noprint Inline-Template Template-Fact
white-space:nowrap;

values: Edit section: Involvement in the community

values: Tabebuia umbellate (page does not exist)

values:
/wiki/World_Wildlife_Fund
mw-redirect
World Wildlife Fund

values:
/wiki/Norman_Schwarzkopf,_Jr.
mw-redirect
Norman Schwarzkopf, Jr.

values: International Standard Serial Number (identifier)

values: display:table-cell;padding:0.2em 0.2em 0.2em 0.3em;vertical-align:middle

values: margin:0.5em 0 0.5em 1em;border:solid #aaa 1px

values: Climate, Community & Biodiversity Alliance

values:
/wiki/Timeline_of_environmental_events
mw-redirect
Timeline of environmental events

values:
nofollow
http://www.nature.org/aboutus/
external text

values:
nofollow
http://www.nature.org/about-us/
external text

values:
nofollow
external text
http://www.nature.org/aboutus/index.htm

values:
nofollow
http://www.nature.org/ourinitiatives/
external text

values:
nofollow
http://www.naturevesttnc.org/about-us/
external text

values:
nofollow
external text
http://plantabillion.org

values:
nofollow
external text
http://www.plantabillion.org

values:
nofollow
external text
http://www.economist.com/node/16274145

values: -moz-column-width: 30em; -webkit-column-width: 30em; column-width: 30em; list-style-type: decimal;

values:
/wiki/Harry_N._Abrams,_Inc.
mw-redirect
Harry N. Abrams, Inc.

values:
nofollow
http://blog.nature.org/
external text

values:
nofollow
http://www.plantabillion.org/
external text

values:
nofollow
http://maps.tnc.org/
external text

values:
/wiki/Conservation_Dependent
mw-redirect
Conservation Dependent

values:
/wiki/Ex-situ_conservation
mw-redirect
Ex-situ conservation

values:
/wiki/In-situ_conservation
mw-redirect
In-situ conservation

values:
navbox-image
6
width:1px;padding:0px 0px 0px 2px

values:
/wiki/Conservation_area
mw-redirect
Conservation area

values:
/wiki/High_conservation_value_area
mw-redirect
High conservation value area

values:
/wiki/National_conservation_area
mw-redirect
National conservation area

values:
/wiki/Ecosystem_restoration
mw-redirect
Ecosystem restoration

values: Amphibian and Reptile Conservation Trust

values: Buglife – The Invertebrate Conservation Trust

values: International Gorilla Conservation Programme

values: Convention for the Conservation of Antarctic Seals

values: Memorandum of Understanding on the Conservation of Migratory Sharks

values: Forest conservation in the United States

values: Medicinal plant conservation (page does not exist)

values:
/wiki/List_of_conservation_issues
mw-redirect
List of conservation issues

values: nowraplinks hlist collapsible expanded navbox-inner

values: Category:Conservation organizations based in the United States

values: Category:Environmental organizations based in the United States

values: Category:Land trusts in the United States

values: Category:Water organizations in the United States

values: Category:Non-profit organizations based in Arlington, Virginia

values: Category:Organizations established in 1951

values: Category:Scientific organizations established in 1951

values: Category:1951 establishments in the United States

values: Category:Webarchive template wayback links

values: Category:All articles with dead external links

values: Category:Articles with dead external links from September 2016

values: Category:Articles needing additional references from August 2010

values: Category:All articles needing additional references

values: Category:Use mdy dates from February 2013

values: Category:Use American English from August 2014

values: Category:All Wikipedia articles written in American English

values: Category:Pages using deprecated image syntax

values: Category:Articles to be expanded from December 2016

values: Category:Articles using small message boxes

values: Category:All articles lacking reliable references

values: Category:Articles lacking reliable references from August 2010

values: Category:All articles with unsourced statements

values: Category:Articles with unsourced statements from August 2010

values: Category:Commons category with local link different than on Wikidata

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/The_Nature_Conservancy
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: portal navigation p-wikibase-otherprojects p-wikibase-otherprojects-label

values: 大自然保护协会 – Chinese

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-The_Nature_Conservancy rootpage-The_Nature_Conservancy vector-nav-directionality skin-vector action-view


text:
Capital gains tax in the United States
From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
This article is about Capital gains tax in the United States. For other countries, see Capital gains tax.
This article is part of a series on
Taxation in the
United States of America
Federal taxation[show]
Alternative minimum tax
Capital gains tax
Corporate tax
Estate tax
Excise tax
Gift tax
Income tax
Payroll tax
Internal Revenue Service (IRS)
Internal Revenue Code (IRC)
IRS tax forms
Revenue by state
History
Constitutional authority
Taxpayer standing
Court
Protest
Evasion
State and local taxation[show]
State income tax
Property tax
Sales tax
Use tax
Land value tax
State tax levels
Federal tax reform[show]
Automated payment transaction tax
9–9–9
Competitive Tax Plan
Efficient Taxation of Income
FairTax
Flat tax
Hall–Rabushka flat tax
Kemp Commission
Taxpayer Choice Act
USA Tax
Value added tax
Border-adjustment tax
United States portal
v
t
e
In the United States of America, individuals and corporations pay U.S. federal income tax on the net total of all their capital gains. The tax rate depends on both the investor's tax bracket and the amount of time the investment was held. Short-term capital gains are taxed at the investor's ordinary income tax rate and are defined as investments held for a year or less before being sold. Long-term capital gains, on dispositions of assets held for more than one year, are taxed at a lower rate.[1]
Contents
[hide]
1 Current law
1.1 Additional taxes
1.2 Cost basis
1.2.1 Depreciation
1.2.2 Other gains in the course of business
1.2.3 Inherited property
1.2.4 Capital losses
1.2.5 Return of capital
2 History
2.1 Summary of recent history
3 Rationale
3.1 Who pays it
3.2 Existence of the tax
3.3 Preferential rate
3.4 Holding period
3.5 Carried interest
4 Effects
4.1 Measuring the effect on the economy
4.2 Factors that complicate measurement
5 Tax avoidance strategies
5.1 Strategic losses
5.2 Versus purchase
5.3 Primary residence
5.4 Deferral strategies
6 Proposals
6.1 Simpson-Bowles
6.2 In the 2016 campaign
6.3 In the 115th Congress
7 References
8 Further reading
Current law[edit]
The United States taxes short-term capital gains at the same rate as it taxes ordinary income.
Long-term capital gains are taxed at lower rates shown in the table below. (Qualified dividends receive the same preference.)
Filing status and annual income - 2018
Long-term
capital gain
rate[2]
Single
Married Filing Jointly or Qualified Widow(er)
Married Filing Separately
Head of Household
Trusts and Estates
$0–$38,600 $0–$77,200 $0–$38,600 $0–$51,700 $0–$2,600 0%
$38,601–$425,800 $77,201–$479,000 $38,601–$239,500 $51,701–$452,400 $2,601–$12,700 15%
Over $425,800 Over $479,000 Over $239,500 Over $452,400 Over $12,700 20%
Separately, the tax on collectibles and certain small business stock is capped at 28%. The tax on unrecaptured Section 1250 gain — the portion of gains on depreciable real estate (structures used for business purposes) that has been or could have been claimed as depreciation — is capped at 25%.
The income amounts ("tax brackets") were reset by the Tax Cuts and Jobs Act of 2017 for the 2018 tax year to equal the amount that would have been due under prior law.[2] They will be adjusted each year based on the Chained CPI measure of inflation. These income amounts are after deductions: There is another bracket, of income below that shown as $0 in the table, on which no tax is due. For 2018, this amount is at least the standard deduction, $12,000 for an individual return and $24,000 for a joint return, or more if the taxpayer has over that amount in itemized deductions.
Additional taxes[edit]
There may be taxes in addition to the tax rates shown in the above table.
Taxpayers earning income above certain thresholds ($200,000 for singles and heads of household, $250,000 for married couples filing jointly and qualifying widowers with dependent children, and $125,000 for married couples filing separately) pay an additional 3.8% tax on all investment income.[3][4] Therefore, the top federal tax rate on long-term capital gains is 23.8%.
State and local taxes often apply to capital gains. In a state whose tax is stated as a percentage of the federal tax liability, the percentage is easy to calculate. Some states structure their taxes differently. In this case, the treatment of long-term and short-term gains does not necessarily correspond to the federal treatment.
Capital gains do not push ordinary income into a higher income bracket. The Capital Gains and Qualified Dividends Worksheet in the Form 1040 instructions specifies a calculation that treats both long-term capital gains and qualified dividends as though they were the last income received, then applies the preferential tax rate as shown in the above table.[5]
Cost basis[edit]
The capital gain that is taxed is the excess of the sale price over the cost basis of the asset. The taxpayer reduces the sale price and increases the cost basis (reducing the capital gain on which tax is due) to reflect transaction costs such as brokerage fees, certain legal fees, and the transaction tax on sales.
Depreciation[edit]
In contrast, when a business is entitled to a depreciation deduction on an asset used in the business (such as for each year's wear on a piece of machinery), it reduces the cost basis of that asset by that amount, potentially to zero.[6] The reduction in basis occurs whether or not the business claims the depreciation.
If the business then sells the asset for a gain (that is, for more than its adjusted cost basis), this part of the gain is called depreciation recapture. When selling certain real estate, it may be treated as capital gain. When selling equipment, however, depreciation recapture is generally taxed as ordinary income, not capital gain. Further, when selling some kinds of assets, none of the gain qualifies as capital gain.
Other gains in the course of business[edit]
If a business develops and sells properties, gains are taxed as business income rather than investment income. The Fifth Circuit Court of Appeals, in Byram v. United States (1983), set out criteria for making this decision and determining whether income qualifies for treatment as a capital gain.[7]
Inherited property[edit]
Under the stepped-up basis rule,[8] for an individual who inherits a capital asset, the cost basis is "stepped up" to its fair market value of the property at the time of the inheritance. When eventually sold, the capital gain or loss is only the difference in value from this stepped-up basis. Increase in value that occurred before the inheritance (such as during the life of the decedent) is never taxed.
Capital losses[edit]
If a taxpayer realizes both capital gains and capital losses in the same year, the losses offset (cancel out) the gains. The amount remaining after offsetting is the net gain or net loss used in the calculation of taxable gains.
For individuals, a net loss can be claimed as a tax deduction against ordinary income, up to $3,000 per year ($1,500 in the case of a married individual filing separately). Any remaining net loss can be carried over and applied against gains in future years. However, losses from the sale of personal property, including a residence, do not qualify for this treatment.[9]
Corporations with net losses of any size can re-file their tax forms for the previous three years and use the losses to offset gains reported in those years. This results in a refund of capital gains taxes paid previously. After the carryback, a corporation can carry any unused portion of the loss forward for five years to offset future gains.[10]
Return of capital[edit]
Corporations may declare that a payment to shareholders is a return of capital rather than a dividend. Dividends are taxable in the year that they are paid, while returns of capital work by decreasing the cost basis by the amount of the payment, and thus increasing the shareholder's eventual capital gain. Although most qualified dividends receive the same favorable tax treatment as long-term capital gains, the shareholder can defer taxation of a return of capital indefinitely by declining to sell the stock.
History[edit]
US Capital Gains Taxes history chart
From 1913 to 1921, capital gains were taxed at ordinary rates, initially up to a maximum rate of 7%.[11] The Revenue Act of 1921 allowed a tax rate of 12.5% gain for assets held at least two years.[11] From 1934 to 1941, taxpayers could exclude from taxation up to 70% of gains on assets held 1, 2, 5, and 10 years.[11] Beginning in 1942, taxpayers could exclude 50% of capital gains on assets held at least six months or elect a 25% alternative tax rate if their ordinary tax rate exceeded 50%.[11] From 1954 to 1967, the maximum capital gains tax rate was 25%.[12] Capital gains tax rates were significantly increased in the 1969 and 1976 Tax Reform Acts.[11] In 1978, Congress eliminated the minimum tax on excluded gains and increased the exclusion to 60%, reducing the maximum rate to 28%.[11] The 1981 tax rate reductions further reduced capital gains rates to a maximum of 20%.
The Tax Reform Act of 1986 repealed the exclusion of long-term gains, raising the maximum rate to 28% (33% for taxpayers subject to phaseouts).[11] The 1990 and 1993 budget acts increased ordinary tax rates but re-established a lower rate of 28% for long-term gains, though effective tax rates sometimes exceeded 28% because of other tax provisions.[11] The Taxpayer Relief Act of 1997 reduced capital gains tax rates to 10% and 20% and created the exclusion for one's primary residence.[11] The Economic Growth and Tax Relief Reconciliation Act of 2001 reduced them further, to 8% and 18%, for assets held for five years or more. The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduced the rates to 5% and 15%, and extended the preferential treatment to qualified dividends.
The 15% tax rate was extended through 2010 as a result of the Tax Increase Prevention and Reconciliation Act of 2005, then through 2012. The American Taxpayer Relief Act of 2012 made qualified dividends a permanent part of the tax code but added a 20% rate on income in the new, highest tax bracket.
The Emergency Economic Stabilization Act of 2008 caused the IRS to introduce Form 8949, and radically change Form 1099-B,[13] so that brokers would report not just the amounts of sales proceeds but purchases to the IRS, enabling the IRS to verify reported capital gains.
The Small Business Jobs Act of 2010 exempted taxes on capital gains for angel and venture capital investors on small business stock investments if held for 5 years. It was a temporary measure but was extended through 2011 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 as a jobs stimulus.[14][15]
In 2013, provisions of the Patient Protection and Affordable Care Act ("Obama-care") took effect that imposed the Medicare tax of 3.8% (formerly a payroll tax) on capital gains of high-income taxpayers.
Summary of recent history[edit]
From 1998 through 2017, tax law keyed the tax rate for long-term capital gains to the taxpayer's tax bracket for ordinary income, and set forth a lower rate for the capital gains. (Short-term capital gains have been taxed at the same rate as ordinary income for this entire period.)[16] This approach was dropped by the Tax Cuts and Jobs Act of 2017, starting with tax year 2018.[2]
July 1998 – 2000
2001 – May 2003
May 2003 – 2007
2008 – 2012
2013 – 2017
Ordinary Income Tax Rate
Long-term Capital Gains
Tax Rate
Ordinary Income Tax Rate
Long-term Capital Gains
Tax Rate**
Ordinary Income Tax Rate
Long-term Capital Gains
Tax Rate
Long-term Capital Gains
Tax Rate
Ordinary Income Tax Rate
Long-term Capital Gains
Tax Rate
15% 10% 10% 10% 10% 5% 0% 10% 0%
15% 10% 15% 5% 0% 15% 0%
28% 20% 27%* 20% 25% 15% 15% 25% 15%
31% 20% 30%* 20% 28% 15% 15% 28% 15%
36% 20% 35%* 20% 33% 15% 15% 33% 15%***
39.6% 20% 38.6%* 20% 35% 15% 15% 35% 15%***
39.6% 20%***
* This rate was reduced one-half percentage point for 2001 and one-half percentage point for 2002 and beyond.
** There was a two percentage point reduction for capital gains from certain assets held for more than five years, resulting in 8% and 18% rates.
*** The gain may also be subject to the 3.8% Medicare tax.
Rationale[edit]
Percent of personal income from capital gains and dividends for different income groups (2006).
Who pays it[edit]
Capital gains taxes are disproportionately paid by high-income households, since they are more likely to own assets that generate the taxable gains.[17] While this supports the argument that payers of capital gains taxes have more "ability to pay,"[18] it also means that the payers are especially able to defer or avoid the tax, as it only comes due if and when the owner sells the asset. The disproportionate incidence on high-income households means that most debate on tax rates is partisan. The Republican Party favors lower rates, whereas the Democratic Party favors higher rates.[19]
Even though the incidence of the tax is on high-income taxpayers, low-income taxpayers who do not file capital gains taxes may wind up paying them through changed prices as the actual payers pass through the cost of paying the tax. Another factor complicating the use of capital gains taxes to address income inequality is that capital gains are usually not recurring income. A taxpayer may be "high-income" in the single year in which he or she sells an asset or invention.[20]
Existence of the tax[edit]
The existence of the capital gains tax is controversial on partisan grounds. In 1995, to support the Contract with America legislative program of House Speaker Newt Gingrich, Stephen Moore and John Silvia wrote a study for the Cato Institute. In the study, they proposed halving of capital gains taxes, arguing that this move would "substantially raise tax collections and increase tax payments by the rich" and that it would increase economic growth and job creation. They wrote that the tax "is so economically inefficient...that the optimal economic policy...would be to abolish the tax entirely."[21] More recently, Moore has written that the capital gains tax constitutes double taxation. "First, most capital gains come from the sale of financial assets like stock. But publicly held companies have to pay corporate income tax....Capital gains is a second tax on that income when the stock is sold."[22]
Richard Epstein says that the capital-gains tax "slows down the shift in wealth from less to more productive uses" by imposing a cost on the decision to shift assets. He favors repeal or a rollover provision to defer the tax on gains that are reinvested.[23]
Preferential rate[edit]
The fact that the long-term capital gains rate is lower than the rate on ordinary income is regarded by the political left, such as Sen. Bernie Sanders, as a "tax break" that excuses investors from paying their "fair share."[18][24] The tax benefit for a long-term capital gain is sometimes referred to as a "tax expenditure" that government could elect to stop spending.[25] By contrast, Republicans favor lowering the capital gain tax rate as an inducement to saving and investment. Also, the lower rate partly compensates for the fact that some capital gains are illusory and reflect nothing but inflation between the time the asset is bought and the time it is sold. Moore writes, "when inflation is high....the tax rate can even rise above 100 percent",[22] as when a taxpayer owes tax on a capital gain that does not result in any increase in real wealth.
Holding period[edit]
The one-year threshold between short-term and long-term capital gains is arbitrary and has changed over time. Short-term gains are disparaged as speculation and are perceived as self-interested, myopic, and destabilizing,[26] while long-term gains are characterized as investment, which supposedly reflects a more stable commitment that is in the nation's interest. Others call this a false dichotomy.[27] The holding period to qualify for favorable tax treatment has varied from six months to ten years (see History above). There was special treatment of assets held for five years during the Presidency of George W. Bush. In her 2016 Presidential campaign, Hillary Clinton advocated holding periods of up to six years with a sliding scale of tax rates.[28]
Carried interest[edit]
Carried interest is the share of any profits that the general partners of private equity funds receive as compensation, despite not contributing any initial funds.[29] The manager may also receive compensation that is a percentage of the assets under management.[30] Tax law provides that when such managers take, as a fee, a portion of the gain realized in connection with the investments they manage, the manager's gain is afforded the same tax treatment as the client's gain. Thus, where the client realizes long-term capital gains, the manager's gain is a long-term capital gain—generally resulting in a lower tax rate for the manager than would be the case if the manager's income were not treated as a long-term capital gain. Under this treatment, the tax on a long-term gain does not depend on how investors and managers divide the gain.
This tax treatment is often called the "hedge-fund loophole",[31] even though it is private equity funds that benefit from the treatment; hedge funds usually do not have long-term gains.[32] It has been criticized as "indefensible" and a "gross unfairness",[33] because it taxes management services at a preferential rate intended for long-term gains. Warren Buffett has used the term "coddling the super rich".[34] One counterargument is that the preferential rate is warranted because a grant of carried interest is often deferred and contingent, making it less reliable than a regular salary.[35]
The 2017 tax reform established a three-year holding period for these fund managers to qualify for the long-term capital-gains preference.[36]
Effects[edit]
The capital gains tax raises money for government but penalizes investment (by reducing the final rate of return). Proposals to change the tax rate from the current rate are accompanied by predictions on how it will affect both results. For example, an increase of the tax rate would be more of a disincentive to invest in assets, but would seem to raise more money for government. However, the Laffer curve suggests that the revenue increase might not be linear and might even be a decrease, as Laffer's "economic effect" begins to outweigh the "arithmetic effect."[37] For example, a 10% rate increase (such as from 20% to 22%) might raise less than 10% additional tax revenue by inhibiting some transactions. Laffer postulated that a 100% tax rate results in no tax revenue.
Another economic effect that might make receipts differ from those predicted is that the United States competes for capital with other countries. A change in the capital gains rate could attract more foreign investment, or drive United States investors to invest abroad.[38]
Congress sometimes directs the Congressional Budget Office (CBO) to estimate the effects of a bill to change the tax code. It is contentious on partisan grounds whether to direct the CBO to use dynamic scoring[39] (to include economic effects), or static scoring that does not consider the bill's effect on the incentives of taxpayers. After failing to enact the Budget and Accounting Transparency Act of 2014,[40] Republicans mandated dynamic scoring in a rule change at the start of 2015, to apply to the Fiscal Year 2016 and subsequent budgets.[41]
Measuring the effect on the economy[edit]
Supporters of cuts in capital gains tax rates may argue that the current rate is on the falling side of the Laffer curve (past a point of diminishing returns) — that it is so high that its disincentive effect is dominant, and thus that a rate cut would "pay for itself."[39] Opponents of cutting the capital gains tax rate argue the correlation between top tax rate and total economic growth is inconclusive.[42]
Mark LaRochelle wrote on the conservative website Human Events that cutting the capital gains rate increases employment. He presented a U.S. Treasury chart to assert that "in general, capital gains taxes and GDP have an inverse relationship: when the rate goes up, the economy goes down". He also cited statistical correlation based on tax rate changes during the presidencies of George W. Bush, Bill Clinton, and Ronald Reagan.[43]
Top tax rates on long-term capital gains and real economic growth (measured as the percentage change in real GDP) from 1950 to 2011. Burman found low correlation (0.12) between low capital gains taxes and economic growth.[44]
However, comparing capital gains tax rates and economic growth in America from 1950 to 2011, Brookings Institution economist Leonard Burman found "no statistically significant correlation between the two", even after using "lag times of five years." Burman's data are shown in the chart at right.[42][44]
Economist Thomas L. Hungerford of the liberal Economic Policy Institute found "little or even a negative" correlation between capital gains tax reduction and rates of saving and investment, writing: "Saving rates have fallen over the past 30 years while the capital gains tax rate has fallen from 28% in 1987 to 15% today .... This suggests that changing capital gains tax rates have had little effect on private saving".[17][45] Hungerford also studied top marginal tax rates from 1945 to 2010 and likewise found no correlation with saving, investment and productivity growth.[46]
Factors that complicate measurement[edit]
Researchers usually use the top marginal tax rate to characterize policy as high-tax or low-tax. This figure measures the disincentive on the largest transactions per additional dollar of taxable income. However, this might not tell the complete story. The table Summary of recent history above shows that, although the marginal rate is higher now than at any time since 1998, there is also a substantial bracket on which the tax rate is 0%.
Another reason it is hard to prove correlation between the top capital gains rate and total economic output is that changes to the capital gains rate do not occur in isolation, but as part of a tax reform package. They may be accompanied by other measures to boost investment, and Congressional consensus to do so may derive from an economic shock, from which the economy may have been recovering independent of tax reform. A reform package may include increases and decreases in tax rates; the Tax Reform Act of 1986 increased the top capital gains rate, from 20% to 28%, as a compromise for reducing the top rate on ordinary income from 50% to 28%.[47][48]
Tax avoidance strategies[edit]
Strategic losses[edit]
The ability to use capital losses to offset capital gains in the same year is discussed above. Toward the end of a tax year, some investors sell assets that are worth less than the investor paid for them to obtain this tax benefit.
A wash sale, in which the investor sells an asset and buys it (or a similar asset) right back, cannot be treated as a loss at all, although there are other potential tax benefits as consolation.[49]
In January, a new tax year begins; if stock prices increase, analysts may attribute the increase to an absence of such end-of-year selling and say there is a January effect. A Santa Claus rally is an increase in stock prices at the end of the year, perhaps in anticipation of a January effect.
Versus purchase[edit]
A taxpayer can designate that a sale of corporate stock corresponds to a specified purchase. For example, the taxpayer holding 500 shares may have bought 100 shares each on five occasions, probably at a different price each time. The individual lots of 100 shares are typically not held separate; even in the days of physical stock certificates, there was no indication which stock was bought when. If the taxpayer sells 100 shares, then by designating which of the five lots is being sold, the taxpayer will realize one of five different capital gains or losses. The taxpayer can maximize or minimize the gain depending on an overall strategy, such as generating losses to offset gains, or keeping the total in the range that is taxed at a lower rate or not at all.
To use this strategy, the taxpayer must specify at the time of a sale which lot is being sold (creating a "contemporaneous record"). This "versus purchase" sale is versus (against) a specified purchase. On brokerage websites, a "Lot Selector" may let the taxpayer specify the purchase to which a sell order corresponds.[50]
Primary residence[edit]
Section 121[51] lets an individual exclude from gross income up to $250,000 ($500,000 for a married couple filing jointly) of gains on the sale of real property if the owner owned and used it as primary residence for two of the five years before the date of sale. The two years of residency do not have to be continuous. An individual may meet the ownership and use tests during different 2-year periods. A taxpayer can move and claim the primary-residence exclusion every two years if living in an area where home prices are rising rapidly.
The tests may be waived for military service, disability, partial residence, unforeseen events, and other reasons. Moving to shorten one's commute to a new job is not an unforeseen event.[52] Bankruptcy of an employer that induces a move to a different city is likely an unforeseen event, but the exclusion will be pro-rated if one has stayed in the home less than two years.[53]
The amount of this exclusion is not increased for home ownership beyond five years.[54] One is not able to deduct a loss on the sale of one's home.
The exclusion is also pro-rated if there is a portion of the ownership period in which the home was not the principal residence of the taxpayer, spouse, or ex-spouse.[55][56][57]
Deferral strategies[edit]
Taxpayers can defer capital gains taxes to a future tax year using the following strategies:[58]
Section 1031 exchange – If a business sells property but uses the proceeds to buy similar property, it may be treated as a "like kind" exchange. Tax is not due based on the sale; instead, the cost basis of the original property is applied to the new property. A business cannot avoid capital gains taxes, but can defer them indefinitely with this technique.[59][60]
Although 1031 treatment is not available for personal real estate, the taxpayer can reside in the property. For example, a homeowner could move out of the primary residence, rent it out temporarily, exchange it for a new house, rent that house out temporarily, and then move into it.[61]
Structured sales, such as the self-directed installment sale, are sales that use a third party, in the style of an annuity. They permit sellers to defer recognition of gains on the sale of a business or real estate to the tax year in which the proceeds are received.[62] Fees and complications should be weighed against the tax savings.[63]
Charitable trusts, set up to transfer assets to a charity upon death or after a term of years, normally avoid capital gains taxes on the appreciation of the assets, while allowing the original owner to benefit from the asset in the meantime.[64]
Proposals[edit]
Simpson-Bowles[edit]
In 2011, President Barack Obama signed Executive Order 13531 establishing the National Commission on Fiscal Responsibility and Reform (the "Simpson-Bowles Commission") to identify "policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run". The Commission's final report took the same approach as the 1986 reform: eliminate the preferential tax rate for long-term capital gains in exchange for a lower top rate on ordinary income.[65]
The proposals were not enacted. Republicans wanted Obama to rally his fellow Democrats on fiscal policy; 2012 presidential candidate Mitt Romney faulted Obama for "missing the bus" on his own Commission.[66] Obama countered that his own tax plan "made some adjustments to" Simpson-Bowles and was "before the Congress," but Politifact wrote that "we don’t expect the GOP-led Congress to pursue it."[66]
In the 2016 campaign[edit]
Tax policy was a part of the 2016 presidential campaign, as candidates proposed changes to the tax code that affect the capital gains tax.
President Donald Trump's main proposed change to the capital gains tax was to repeal the 3.8% Medicare surtax that took effect in 2013. He also proposed to repeal the Alternative Minimum Tax, which would reduce tax liability for taxpayers with large incomes including capital gains. His maximum tax rate of 15% on businesses could result in lower capital gains taxes. However, as well as lowering tax rates on ordinary income, he would lower the dollar amounts for the remaining tax brackets, which would subject more individual capital gains to the top (20%) tax rate.[67][68] Other Republican candidates proposed to lower the capital gains tax (Ted Cruz proposed a 10% rate), or eliminate it entirely (such as Marco Rubio).[69]
Democratic nominee Hillary Clinton proposed to increase the capital gains tax rate for high-income taxpayers by "creating several new, higher ordinary rates",[70] and proposed a sliding scale for long-term capital gains, based on the time the asset was owned, up to 6 years.[70] Gains on assets held from one to two years would be reclassified short-term[71] and taxed as ordinary income, at an effective rate of up to 43.4%, and long-term assets not held for a full 6 years would also be taxed at a higher rate.[72] Clinton also proposed to treat carried interest (see above) as ordinary income, increasing the tax on it, to impose a tax on "high-frequency" trading, and to take other steps.[73] Bernie Sanders proposed to treat many capital gains as ordinary income, and increase the Medicare surtax to 6%, resulting in a top effective rate of 60% on some capital gains.[70]
In the 115th Congress[edit]
The Republican Party introduced the American Health Care Act (House Bill 1628), which would amend the Patient Protection and Affordable Care Act ("ACA" or "Obamacare") to repeal the 3.8% tax on all investment income for high-income taxpayers[74] and the 2.5% "shared responsibility payment" ("individual mandate") for taxpayers who do not have an acceptable insurance policy, which applies to capital gains.[75] The House passed this bill but the Senate did not.
2017 tax reform
House Bill 1 (the Tax Cuts and Jobs Act of 2017) was released on November 2, 2017 by Chairman Kevin Brady of the House Ways and Means Committee. Its treatment of capital gains was comparable to current law, but it roughly doubled the standard deduction, while dropping personal exemptions in favor of a larger child tax credit. The tax brackets continued to be inflation-adjusted, but used the stingier Chained CPI as the measurement of inflation. President Trump and Sen. Tom Cotton of Arkansas advocated using the bill to also repeal the shared responsibility payment, but Rep. Brady believed it would complicate passage of the bill.[76] The House passed H.B. 1 on November 16.
The Senate version of H.B. 1 passed on December 2. Its capital gains tax brackets were only slightly different from those of the House version. It zeroed out the shared responsibility payment, but only beginning in 2019. Attempts to repeal "versus purchase" sales of stock (see above),[77] and to make it harder to exclude gains on the sale of one's personal residence, did not survive the conference committee.[78] Regarding "carried interest" (see above), the conference committee raised the holding period from one year to three to qualify for long-term capital-gains treatment.[36]
The tax bills were "scored" to ensure their cost in lower government revenue was small enough to qualify under the Senate's reconciliation procedure. The law required this to use dynamic scoring (see above), but Larry Kudlow claimed that the scoring underestimated economic incentives and inflow of capital from abroad.[79] To improve the scoring, changes to the personal income tax expired at the end of 2025.
Both houses of Congress passed H.B. 1 on December 20 and President Trump signed it into law on December 22.
"Phase two"
On March 13, 2018, Trump appointed Kudlow the assistant to the President for Economic Policy and Director of the National Economic Council, replacing Gary Cohn,[80] effective April 2. Kudlow supports indexing the cost basis of taxable investments to avoid taxing gains that are merely the result of inflation, and has recently suggested that the law allows Trump to direct the IRS to do so without a vote of Congress.[81] Trump and Kudlow both announced a "phase two" of tax reform, suggesting a new bill that included a lower capital gains rate.[82]
References[edit]
Jump up ^ See subsection (h) of 26 U.S.C. § 1.
^ Jump up to: a b c Matthew Frankel (2017-12-22). "Your Guide to Capital Gains Taxes in 2018". Motley Fool.
Jump up ^ "Questions and Answers on the Net Investment Income Tax". IRS. 2016-10-13. Retrieved 2017-05-27.
Jump up ^ 26 U.S.C. § 1411
Jump up ^ Dilip Sarwate (2014-03-12). "How are long-term capital gains taxed if the gain pushes income into a new tax bracket?". StackExchange.com. Retrieved 2016-12-04.
Jump up ^ 26 U.S.C. § 168
Jump up ^ Dodge, Joseph M.; Jr, J. Clifton Fleming; Peroni, Robert J. (2012-02-16). Federal Income Tax: Doctrine, Structure, and Policy: Text, Cases, Problems. LexisNexis. ISBN 9780327174639.
Jump up ^ 26 U.S.C. § 1014
Jump up ^ See subsection (b) of 26 U.S.C. § 1212.
Jump up ^ See subsection (a) of 26 U.S.C. § 1212.
^ Jump up to: a b c d e f g h i Joseph J. Cordes, Robert D. Ebel, and Jane G. Gravelle (ed). "Capital Gains Taxation entry from The Encyclopedia of Taxation and Tax PolicyProject". Retrieved 2007-10-03. CS1 maint: Multiple names: authors list (link) CS1 maint: Extra text: authors list (link)
Jump up ^ Tax Policy Center (2012-12-17). "Historical Capital Gains and Taxes". Taxpolicycenter.org. Retrieved 2014-04-15.
Jump up ^ Mark Krantz (2012-02-13). "New rule puts a wrinkle in figuring taxes on stock sales". USA Today. Retrieved 2016-05-07.
Jump up ^ "Congress Resolves Many Tax Issues During Lame Duck Session". Journalofaccountancy.com. Retrieved 2014-04-15.
Jump up ^ 12/20/2010 by Sanford Millar Contact (2010-12-20). "Tax Relief Act Has Small Bus Investment Incentive | Sanford Millar". JDSupra. Retrieved 2014-04-15.
Jump up ^ "Federal Capital Gains Tax Rates, 1988–2011". Tax Foundation. Retrieved 2013-01-08.
^ Jump up to: a b Thomas L. Hungerford (2010-06-18). "The Economic Effects of Capital Gains Taxation" (PDF).
^ Jump up to: a b Sen. Bernie Sanders (2016). "Making the Wealthy, Wall Street, and Large Corporations Pay their Fair Share".
Jump up ^ "Compare and Contrast the [2016] Republican and Democratic Tax Platforms". Christopher, Smith, Leonard, Bristow & Stanell. Retrieved 2017-03-06.
Jump up ^ Thomas Sowell (2012-10-02). "Capital Gains Taxes". Retrieved 2016-05-06.
Jump up ^ Stephen Moore; John Silvia (1995-10-04). "The ABCs of the Capital Gains Tax". Retrieved 2016-05-03.
^ Jump up to: a b Stephen Moore (2015-08-02). "Five myths about capital gains taxes". Washington Times. Retrieved 2016-05-03.
Jump up ^ Richard Epstein (2017-05-06). "Why Trump's Tax Plan Is Welcome". Newsweek. Retrieved 2017-05-07.
Jump up ^ Greg Anrig (2011-10-21). "10 Reasons to Eliminate the Tax Break for Capital Gains". The Century Foundation. Retrieved 2016-05-15.
Jump up ^ Seth Hanlon (2011-02-23). "Tax Expenditure of the Week: Capital Gains". americanprogress.org.
Jump up ^ Bogle, Buffett; et al. (2009-09-09). "Overcoming Short-termism: A Call for a More Responsible Approach to Investment and Business Management" (PDF). Aspen Institute. Retrieved 2016-05-06.
Jump up ^ "Big Picture Investment Strategies (section "Investing vs Speculating")". RetailInvestor.org.
Jump up ^ Alan Cole (2015-07-28). "The Details of Hillary Clinton's Capital Gains Tax Proposal". Tax Foundation. Retrieved 2016-05-03.
Jump up ^ Matthew Johnston. "Carried Interest: A Loophole in America's Tax Code". Investopedia.
Jump up ^ "Reducing the Deficit: Spending and Revenue Options" (PDF). Congressional Budget Office. March 2011.
Jump up ^ "Kill the hedge fund tax break". USA Today. 2015-09-15. Retrieved 2016-08-31.
Jump up ^ Timothy Spangler, One Step Ahead: Private Equity and Hedge Funds After the Global Financial Crisis, page 93.
Jump up ^ Michael B. Marois; Cristina Alesci (2012-02-13). "Calpers's Dear Calls Private Equity Tax Break 'Indefensible'". Bloomberg.
Jump up ^ Buffett, Warren E. (2011-08-14). "Stop Coddling the Super-Rich". The New York Times. ISSN 0362-4331. Retrieved 2016-08-29.
Jump up ^ "What Is Carried Interest?". FindLaw. Retrieved 2016-05-16.
^ Jump up to: a b Staff (2017-12-15). "Factbox: What's in the Republicans' final tax legislation". Reuters.
Jump up ^ Laffer, Arthur. "The Laffer Curve: Past, Present, and Future". The Heritage Foundation. Retrieved 2016-05-02.
Jump up ^ Robert Wood (2015-03-25). "U.S. Capital Gain Rate Among World's Highest but President Obama Wants More". Forbes.
^ Jump up to: a b Joseph Lawler (2015-03-16). "Can tax reform pay for itself?". Washington Examiner. Retrieved 2016-05-07.
Jump up ^ "H.R.1872 - Budget and Accounting Transparency Act of 2014". United States Congress. Retrieved 2016-05-05.
Jump up ^ "The House's New Rule on Dynamic Scoring". Committee for a Responsible Federal Budget. 2015-01-08. Retrieved 2017-09-08.
^ Jump up to: a b Brendan Greeley (2012-10-04). "Study Finds Benefit Is Elusive for Low Capital Gains Rate". bloomberg.com.
Jump up ^ Mark LaRochelle (2012-05-08). "Raising the capital gains tax will not lead to 'fairness,' but only slam U.S. job creation". Human Events.
^ Jump up to: a b Burman, Leonard (2012-09-20). "Tax Reform and the Tax Treatment of Capital Gains" (PDF). House Committee on Ways and Means and the Senate Committee on Finance. Retrieved 2012-09-27.
Jump up ^ Massimo Guidolin; Elizabeth A. La Jeunesse (July 2011). "The Decline in the U.S. Personal Saving Rate: Is It Real and Is It a Puzzle?" (PDF). St. Louis Federal Reserve Bank. (See Figure 1)
Jump up ^ Thomas L. Hungerford (2012-09-14). "Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945" (PDF). Congressional Research Service. Archived from the original (PDF) on 2013-07-26.
Jump up ^ Joseph Henchman (2012-09-28). "Back to the Future? Lessons from the Tax Reform Act of 1986". Tax Foundation. Retrieved 2016-05-05.
Jump up ^ Mark Bloomfield (2015-02-05). "On capital gains, Obama is no Reagan". The Hill. Retrieved 2016-05-05.
Jump up ^ 26 U.S.C. § 1091
Jump up ^ IRS Publication 551, Basis of Assets
Jump up ^ 26 U.S.C. § 121
Jump up ^ Real Estate Notebook, Robert J. Bruss, August 20, 2006
Jump up ^ Bruss, Robert J. "Real Estate Mailbag". The Washington Post. Retrieved April 28, 2010.
Jump up ^ See IRS Publication 523.
Jump up ^ Russell, Richard L; Clovey, Robert (1 February 2009). "Gain on Sale of Primary Residence: New Tax Implications" (PDF). The CPA Journal.
Jump up ^ "Sec. 121 Planning Opportunities After the Housing Assistance Tax Act". The Tax Adviser. 28 February 2009.
Jump up ^ "New law's reduced homesale exclusion for nonqualified use will mean headaches for sellers years down the road". The Flores Group: Business & Tax Attorneys. 28 August 2008.
Jump up ^ "Capital Gains Tax Relief". Internal Revenue Service. 2010-08-15. Retrieved 2016-05-02.
Jump up ^ Internal Revenue Code, section 1031, Exchange of Property held for Productive Use or Investment published February 2008
Jump up ^ IRS "Like Kind Exchanges Tax Tips"
Jump up ^ "1031 Exchange". ThinkGlink. Retrieved 2014-04-15.
Jump up ^ IRS Publication 537, Installment Sales
Jump up ^ "Deferral Games". Forbes. 2007-02-09. Retrieved 2016-05-02.
Jump up ^ Internal Revenue Code, section 4947(a)(1) updated April 18, 2014
Jump up ^ Robert Bixby (2013-04-23). "Simpson-Bowles Plan Could Play Vital Role in Moving Towards Compromise". Concord Coalition. Retrieved 2016-05-15.
^ Jump up to: a b Amy Sherman (2012-10-11). "Obama says his plan made "some adjustments" to Simpson-Bowles". Politifact. Retrieved 2016-05-15.
Jump up ^ Donald Trump. "Tax Reform That Will Make America Great Again". Archived from the original on 2016-01-04. Retrieved 2016-05-15.
Jump up ^ Alan Cole (2015-09-29). "Details and Analysis of Donald Trump's Tax Plan". Tax Foundation. Retrieved 2016-05-15.
Jump up ^ "Comparing the 2016 Presidential Tax Reform Proposals". Tax Foundation. Retrieved 2016-05-15.
^ Jump up to: a b c Ryan Ellis (2016-01-26). "Clinton And Sanders Propose Highest Capital Gains Tax Rate In History". Forbes. Retrieved 2016-05-15.
Jump up ^ Everett Rosenfeld (2015-09-24). "Hillary Clinton proposes sharp increase in short-term capital gains taxes". CNBC. Retrieved 2016-05-15.
Jump up ^ Larry Kudlow (2015-07-25). "Hillary's inconceivably stupid capital-gains tax scheme". CNBC. Retrieved 2016-05-15.
Jump up ^ Hillary Clinton. "Wall Street Reform". Retrieved 2016-05-15.
Jump up ^ Laura Saunders (2017-07-14). "What the Senate's 3.8% Surtax Means for American Taxpayers". Wall Street Journal.
Jump up ^ Golstein, Amy; DeBonis, Mike; Snell, Kelsey. "House Republicans release long-awaited plan to repeal and replace Obamacare". Washington Post. Retrieved March 7, 2017.
Jump up ^ Sahil Kapur (2017-11-01). "Trump Calls for Using Tax Bill to Repeal Obamacare's Individual Mandate". Bloomberg.
Jump up ^ "Senate Tax Reform Bill Restricts Choice of Which Shares to Sell First". Tax Foundation. 2017-11-27.
Jump up ^ Joseph Lawler (2017-12-15). "Beer wins, bikers lose in final Republican tax bill". Washington Examiner.
Jump up ^ Larry Kudlow (2017-12-05). "I'd Vote for It - You Should, Too". TownHall.com.
Jump up ^ Kevin Liptak and Dan Merica (2018-03-14). "Kudlow to become Trump's next top economic adviser". CNN. Retrieved 2018-03-16.
Jump up ^ Jonathan Chait (2018-03-20). "Trump Economist Wants to Give Rich People Another Tax Break, Without a Vote in Congress". New York Magazine. Retrieved 2018-04-05.
Jump up ^ Toluse Olorunnipa (2018-03-14). "Americans May Get Permanent Tax Cut in 'Phase Two,' Kudlow Says". Bloomberg. Retrieved 2018-03-16.
Further reading[edit]
"IRS Tax Tip 2015-21: Ten Facts That You Should Know about Capital Gains and Losses". IRS. 2015-02-18. Retrieved 2017-12-28.
Black, Stephen (2011). "A Capital Gains Anomaly: Commissioner v. Banks and the Proceeds from Lawsuits". St. Mary's Law Journal. 43: 113. SSRN 1858776  .
Retrieved from "https://en.wikipedia.org/w/index.php?title=Capital_gains_tax_in_the_United_States&oldid=845687721"
Categories:
Taxation in the United States
Capital gains taxes
Investment in the United States
Hidden categories:
CS1 maint: Multiple names: authors list
CS1 maint: Extra text: authors list
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
Add links
This page was last edited on 13 June 2018, at 13:23.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view
Enable previews

key: html

type: local

value: div

attrs: id class

values: mw-page-base noprint

values: mw-head-base noprint

value: a

attrs: id class lang

values: firstHeading firstHeading en

values: siteSub noprint

attrs: class href

values: mw-jump-link #mw-head

values: mw-jump-link #p-search

attrs: href title

values:
note
hatnote navigation-not-searchable

value: td

value: tr

value: th

value: img

attrs: alt src width height srcset data-file-width data-file-height

values: Logo of the Internal Revenue Service.svg

attrs: href class

attrs: class id href

values: NavToggle NavToggle1 #

attrs: class style

values: History of taxation in the United States

values: font-size: 105%; padding: 0.2em 0px 0.4em; text-align: center; display: none;

values:
/wiki/Automated_payment_transaction_tax
mw-redirect
Automated payment transaction tax

values:
/wiki/Value_added_tax
mw-redirect
Value added tax

attrs: alt src width height class srcset data-file-width data-file-height

values: padding:0.3em 0.4em 0.3em;font-weight:bold;border-top: 1px solid #aaa; border-bottom: 1px solid #aaa;

values: float:right;clear:right;width:22.0em;margin:0 0 1.0em 1.0em;background:#f9f9f9;border:1px solid #aaa;padding:0.2em;border-spacing:0.4em 0;text-align:center;line-height:1.4em;font-size:88%

values: United States Chained Consumer Price Index

values: Edit section: Other gains in the course of business

values:
/wiki/Fifth_Circuit_Court_of_Appeals
mw-redirect
Fifth Circuit Court of Appeals

values:
/wiki/Qualified_dividends
mw-redirect
Qualified dividends

values: Provisions of the Patient Protection and Affordable Care Act

values:
/wiki/Income_inequality
mw-redirect
Income inequality

values: Edit section: Measuring the effect on the economy

values: Edit section: Factors that complicate measurement

values:
/wiki/Marginal_tax_rate
mw-redirect
Marginal tax rate

values: United States presidential election, 2016

values:
/wiki/Alternative_Minimum_Tax
mw-redirect
Alternative Minimum Tax

values:
/wiki/American_Health_Care_Act
mw-redirect
American Health Care Act

values: National Economic Council (United States)

values: Category:CS1 maint: Multiple names: authors list

values: Category:CS1 maint: Extra text: authors list

values:
nofollow
external text
https://fas.org/sgp/crs/misc/R40411.pdf

values:
/wiki/Sen._Bernie_Sanders
mw-redirect
Sen. Bernie Sanders

values:
nofollow
external text
http://www.retailinvestor.org/next.html

values:
nofollow
external text
//www.worldcat.org/issn/0362-4331

values: -moz-column-width: 30em; -webkit-column-width: 30em; column-width: 30em; list-style-type: decimal;

values:
nofollow
external text
//ssrn.com/abstract=1858776

attrs: alt src title width height srcset data-file-width data-file-height

values: Category:Investment in the United States

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values: portal navigation p-navigation p-navigation-label

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values:
/wiki/Wikipedia:File_Upload_Wizard
Upload files [ctrl-alt-u]
u

values: A list of all special pages [ctrl-alt-q]

values: Permanent link to this revision of the page

values: Link to connected data repository item [ctrl-alt-g]

values: Printable version of this page [ctrl-alt-p]

values: /static/images/wikimedia-button-1.5x.png 1.5x, /static/images/wikimedia-button-2x.png 2x

values: /static/images/poweredby_mediawiki_132x47.png 1.5x, /static/images/poweredby_mediawiki_176x62.png 2x

values:
suggestions
display: none; font-size: 13px;

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Capital_gains_tax_in_the_United_States rootpage-Capital_gains_tax_in_the_United_States skin-vector action-view