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Kirk Lindstrom
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Starting as a summer intern in 1978, Kirk worked for 20 as a scientist and engineer at Hewlett Packard's research and development department (R&D) designing solid state devices and components for optical communication. While he was at HP, Kirk invested ten to twenty percent per year of his... 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

    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

    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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  • bpuharic
    , contributor
    Comment (1) | Send Message
    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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