The other day I wrote about the very high US corporate tax rates, both statutory and effective, versus other advanced economies. Turns out the story is nearly as bad concerning capital gains taxes. The Tax Foundation:
Currently, the United States’ top marginal tax rate on long-term capital gains income is 23.8 percent. In addition, taxpayers face state-level capital gains tax rates as low as zero and as high as 13.3 percent. As a result, the average combined top marginal rate in the United States is 28.7 percent. This rate exceeds the average top capital gains tax rate of 18.2 percent faced by taxpayers throughout the industrialized world. Even more, taxpayers in some U.S. states face top rates on capital gains over 30 percent, which is higher than most industrialized countries. In fact, California’s top marginal capital gains tax rate of 33 percent is the third highest in the industrialized world.
And when you look at the combined tax rate on capital, you find a huge gap. The US integrated rate is 67.8% versus 43.7% for OECD economies.