The Congressional Budget Office’s (CBO’s) projections of capital gains realizations have decreased from an estimated high of 8.7% of gross domestic product (GDP) in 2021 down to 3.7% of GDP by 2033. (8.7% was the highest percentage in more than 40 years.) According to the CBO, realized capital gains are highly cyclical and vary more from year to year than other components of individual income. Based on new data, there are indications that capital gains realizations in 2021 were “unusually large,” the CBO said, adding that “those gains help explain the recent strength in receipts from individual income taxes.” For additional information: https://bit.ly/3xZOGKI
Our Blog 