U.S. capital gains taxes: Arbitrary holding periods, debatable tax rates

Southern California Law Review

Volumn 73, Issue 4, 2000, Pages 843-

  Thomas Paschall, C ^a  

^a NONE

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EID: 0043184634     PISSN: 00383910     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (3)

1. Revenue Act of 1913, Pub. L. No. 16, ch. 16, § IIb, 38 Stat. 166 (1915).
2. Revenue Act of 1916, Pub. L. No. 64-271, ch. 463, § IIa, 39 Stat. 756, 757 (1918). In fact, during the Civil War, the U.S. Congress also implemented what might be labeled the first U.S. capital gains tax, as the Civil War Income Tax Act of 1867 (Act of Mar. 2, 1867, § 13, 14 Stat. 477-78) sought to tax all "gains, profits, and income" - however, the Supreme Court held in the 1872 case, Gray v. Darlington, 82 U.S. 63 (1872), that increases of capital value should be excluded from the statutes' definition of taxable income. See id. at 65.
3. When portraying capital gains tax relief on the House floor, Congress members utilize animated language, passionately attacking or supporting each proposal. See, e.g., 143 CONG. REC. H6623-04, H6627 (daily ed. July 31, 1997) (statement of Rep. Goss). Rep. Goss described capital gains tax relief of TRA '97 as follows: "For senior citizens about to embark on their retirement, and many of those come to Florida and my district, we have cut the capital gains tax so they can sell some assets without Washington confiscating, "confiscating" is the word I choose, nearly one third of the gain." Id. (emphasis added). In reply minutes later, Rep. McDermott described his position in regard to capital gains tax cuts: