Potential high-level effects of proposals to extend the taxation of capital income: Background Paper for Session 15 of the Tax Working Group

This paper provides additional analysis of some of the broad economic effects of extending the taxation of capital income by taxing more capital gains. The analysis includes information to help the Tax Working Group understand how different sectors of the economy may be affected, with a particular focus on the housing market. The paper should be considered alongside the companion paper Distributional analysis and incidence.