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Kirk Lindstrom
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Kirk Lindstrom has an engineering degree from the University of California, Berkeley. Following 20 years of research and development as a scientist and engineer at Hewlett Packard, Kirk turned his attention to investments where he edits "Kirk Lindstrom's Investment Letter," that... More
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  • Historical Capital Gains Tax Rates and Market Performance 1 comment
    Jul 28, 2011 1:59 PM | about stocks: SPY, DIA

    The table here shows the Maximum capital gains tax rate history plus top federal income tax rates since 1916.

    Table of Historical Capital Gains Tax Rates
    http://forbestadvice.com/Money/Taxes/Federal-Tax-Rates/Historical_Federal_Capital_Gains_Tax_Rates_History.html

    In 1916 the Capital Gains Tax Rate was 15%.

    Between 1987 and 1996, Capital Gains Tax Rate was between 28% and 29.2%.

    In 1997, under president Bill Clinton, they cut rates to 21.2% and the stock market took off.

    Historical Chart of S&P500
    http://kirklindstrom.com/Charts/SnP500.html

    In 2003, rates were cut again and the market had another big rally, more than doubling before the financial meltdown.

    Today the market seems stuck in a quagmire... could it be because capital gains tax rates return to 25% (21.2% plus 3.8% for Medicare under the Obama-care plan) in 2013?
    Stocks: SPY, DIA
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  • So Kirk's evidence is that cutting the capital gains tax causes bubbles? Yeah, I believe that.
    2 Aug 2011, 10:44 AM Reply Like
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