Can reductions in capital gains taxes cause capital flight?

i don't know, but i accidentally had a wash sale this week....pissed me off... still slightly confused about it too....need to find some time to do more homework

so lower the capital gains tax for a longer period of time before it expires.

If someone knew the tax was going to be low for say 15 years, would that offset it?

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i don't know, but i accidentally had a wash sale this week....pissed me off... still slightly confused about it too....need to find some time to do more homework

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a wash sale is when you sell a stock at a loss, and then re establish your position in the stock within 30 days.

the reason for this rule is to prevent the generation of losses without really changing your position in the stock.

i'm afraid i dont understand your question then. any loss disallowed due to a wash sale is added to your cost basis of the stock you re-buy.

Historically reductions in the capital gains rates have triggered people to sell capital assets and redeploy their capital to new investments that they perceive will have better returns than the assets sold. The reductions in capital gains rates make domestic investment opportunities more attractive. The rresultant redeployment of capital often results in rapid economic growth as many of the new investments provided the necessary capital for business expansion and new business development. And th

Americans have historically not moved their capital overseas due to repatriation issues, and they perceived domestic investment opportunities were superior. Reducing the capital gains rate makes the domestic investment opportunities even more attractive. So it is unlikely that reducing capital gains rates will result in capital flight.