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LEONARD E. BURMAN, The Labyrinth of Capital Gains Tax Policy: A Guide for the Perplexed (Washington, D.C.: Brookings Institution Press, 1999, pp. vii, 196, $26.95).
Probably no income tax concept has generated as much discussion, study, and controversy as the taxation of capital gains. Proponents of lower capital gains tax rates regard preferential treatment as a cure-all for economic blues. Preferential treatment of capital gains, advocates proclaim, promotes savings and investment, increases productivity, encourages risky new ventures, accelerates technological advances, and spurs economic growth. With similar conviction, opponents insist that special treatment for capital gains benefits only the wealthy, encourages tax shelters, adds needless tax complexity, and reduces tax revenue.
Leonard Burman's book, The Labyrinth of Capital Gains Tax Policy: A Guide for the Perplexed, assesses the various arguments for preferential capital gains taxation, replacing political rhetoric with economic facts. While much of what is presented in the book has been seen before, Burman's writing style is engaging and highly readable. Sprinkled throughout the book are historical anecdotes, subtle humor, and illustrative exhibits. Additionally, technical jargon is held to a minimum. The overall effect, therefore, is to allow the reader to navigate successfully through the complex, contradictory, and controversial body of economic literature on capital gains tax policy, ultimately emerging armed with an educated understanding of the issues.
Burman's credentials for writing such a book are excellent....