TY - UNPD A1 - Jacob, Martin T1 - Tax regimes and capital gains realizations N2 - This paper contrasts the individual capital gains realization behavior between progressive and proportional tax regimes. Using a longitudinal panel of over 288,000 individuals in Sweden, I exploit the 1991 tax reform in Sweden that changed progressive capital gains tax rates ranging from 12% to 80% to a proportional tax rate of 30%. Using the proportional tax system to control for non-tax reasons to realize capital gains, I show that individuals are highly responsive to capital gains tax incentives created by temporary income changes under a progressive capital gains tax. More specifically, I find that individuals with temporary negative (positive) income changes sell (hold) shares that they would hold (sell) in the absence of temporary tax incentives. Further, I show that high-income individuals are more tax sensitive than low-income individuals. This result indicates that low-income individuals facing temporary negative income changes could trade predominantly for non-tax reasons. T3 - FAccT Center Working Paper Series - 06/2012 KW - Realisierung von Veräußerungsgewinnen KW - Capital gains realizations KW - Proportionalsteuer KW - Proportional tax KW - Progressivsteuer KW - Progressive tax KW - Spitzeneinkommen KW - Top income Y1 - 2018 UR - https://opus4.kobv.de/opus4-whu/frontdoor/index/index/docId/675 UR - https://nbn-resolving.org/urn:nbn:de:hbz:992-opus4-6759 N1 - Forthcoming in European Accounting Review PB - WHU - Otto Beisheim School of Management CY - Vallendar ER -