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Finance and Economics Discussion Series: Data for FEDS 2013-28 ^♣

Estate vs. Capital Gains Taxation: An Evaluation of Prospective Policies for Taxing Wealth at the Time of Death

Robert B. Avery, Daniel Grodzicki, and Kevin B. Moore

Figure 1. Percent of Unrealized Capital Gains in Gross Estate for Deceased Households (2013-2023)

Wealth at Death	Percent of Unrealized Capital Gains in Gross Estate Current Law	Percent of Unrealized Capital Gains in Gross Estate Obama Prop	Percent of Unrealized Capital Gains in Gross Estate Permanent
< $2m	0.128	0.128	0.128
$2m - $3.5m	0.228	0.231	0.231
$3.5m - $5m	0.282	0.288	0.288
$5m - $10m	0.325	0.321	0.321
$10m - $20m	0.356	0.364	0.364
$20m - $50m	0.425	0.430	0.429
$50m - $100m	0.459	0.457	0.458
> $100m	0.549	0.550	0.550

Return to Figure 1

Figure 2. Estate Tax and Capital Gains Tax Revenue Projections 2013-2023

	2001 Tax	No Step-Up	2009 Tax Law	Step-Up Basis
2013	13.58	36.9807	12.97	12.3392
2014	69.82	37.3687	26.37	12.5
2015	78.57	40.1786	30.18	13.5598
2016	88.96	43.4062	34.61	14.7473
2017	100.32	46.9641	39.99	16.1807
2018	114.28	51.4498	46.93	18.2773
2019	117.93	51.1213	49.04	18.0644
2020	132.59	55.4503	56.57	19.7021
2021	149.76	60.5307	65.45	21.9991
2022	168.19	65.0266	74.85	24.097
2023	199.59	72.1164	91.53	27.8576
Total Revenue	1233.59	560.5934	528.47	199.3245

Return to Figure 2

Figure 3. Percent of Unrealized Capital Gains in Gross Estate for Taxed Households (2013-2023)

Wealth at Death	Percent of Unrealized Capital Gains in Gross Estate Current Law	Percent of Unrealized Capital Gains in Gross Estate Obama Prop	Percent of Unrealized Capital Gains in Gross Estate Permanent
< $2m	0.079	0.000	0.000
$2m - $3.5m	0.196	0.025	0.015
$3.5m - $5m	0.283	0.370	0.333
$5m - $10m	0.329	0.298	0.297
$10m - $20m	0.358	0.332	0.327
$20m - $50m	0.427	0.431	0.420
$50m - $100m	0.454	0.430	0.444
> $100m	0.549	0.534	0.536

Return to Figure 3

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