APPENDIX A -- TABLES
Table I
Percentages by which Income Taxes payable upon Capital Gains are
less under the present Five-Step System than they would be if the
Realized Gains were Taxed on the "Accrual Basis", for Selected
Surtax Net Incomes /1/
Surtax net income Number of years assets were held /2/
from other sources 1 2 5 10
A. Assuming net capital gains equal to
surtax net income from other sources
5,000 21.7 39.5 57.5 68.8
10,000 25.0 39.0 58.2 69.1
20,000 22.7 39.3 58.0 67.9
50,000 24.3 37.7 56.5 67.3
100,000 20.3 39.7 60.0 70.0
500,000 20.3 39.7 60.0 70.0
B. Assuming net capital gain of $50,000
for each selected surtax net income
from other sources
5,000 29.4 34.7 46.1 60.4
10,000 28.9 36.1 48.5 59.8
20,000 27.6 37.3 56.4 66.8
50,000 24.3 37.7 56.5 67.3
100,000 20.0 40.0 60.0 70.0
500,000 20.0 40.0 60.0 70.0
Treasury Department, Division of Research and Statistics
FOOTNOTES TO TABLE
/1/ For a description of the "accrual basis", see p. 14.
/2/ Plus one day.
END OF FOOTNOTES
Table II
Gross Annual Investment Yields Required to Equal the Average Net
Returns after Federal Income Taxes of Gross Capital Gains Averaging
Five Percent per Annum, Compounded Annually, for Selected Cases
Selected Cases Years capital, assets held /1/
10 5 2 1
1. Other surtax net income
= $200,000;
original investment
= $1,000,000;
Average annual yield from capital
gains after Federal income taxes 4.1 3.7 3.0 2.4
Gross annual investment yield
required for equal return after
Federal income taxes 12.8 11.5 9.2 7.1
2. Other surtax net income
= $100,000;
original investment
= $500,000;
Average annual yield from capital
gains after Federal income taxes 4.2 3.8 3.2 2.5
Gross annual investment yield
required for equal return after
Federal income taxes 11.1 10.1 8.3 6.5
3. Other surtax net income
= $50,000;
original investment
= $250,000:
Average annual yield from capital
gains after Federal income taxes 4.4 4.2 3.9 3.5
Gross annual investment yield
required for equal return after
Federal income taxes 7.2 8.9 6.3 5.7
4. Other surtax net income
= $20,000;
original investment
= $100,000:
Avenge annual yield from capital
gains after Federal income taxes 4.7 4.6 4.4 4.2
Gross annual investment yield
required for equal return after
Federal income taxes 5.9 5.8 5.5 5.3
5. Other surtax net income
= $5,000;
original investment
= $25,000:
Average annual yield from capital
gains after Federal income taxes 4.9 4.8 4.8 4.7
Gross annual investment yield
required for equal return sifter
Federal income taxes 5.3 5.3 5.2 5.1
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Plus one day.
END OF FOOTNOTE
Table III
Gross Annual Investment Yields Required to Equal the Average Net
Returns after Federal Income Taxes of Gross Capital Gains Averaging
Ten Percent per Annum, Compounded Annually, for Selected Cases
Selected Cases Years capital, assets held /1/
10 5 2 1
1. Other surtax net income
= $200,000;
original investment
= $1,000,000:
Average annual yield from capital
gains after Federal income taxes 8.5 7.6 8.1 4.7
Gross annual investment yield
required for equal return after
Federal income taxes 27.7 24.6 19.2 14.5
2. Other surtax net income
= $100,000;
original investment
= $500,000:
Average annual yield from capital
gains after Federal income taxes 8.6 7.8 6.4 5.0
Gross annual investment yield
required for equal return after
Federal income taxes 23.5 21.2 17.1 13.4
3. Other surtax net income
= $50,000;
original investment
= $250,000:
Average annual yield from capital
gains after Federal income taxes 8.8 8.2 7.5 6.8
Gross annual investment yield
required for equal return after
Federal income taxes 16.4 15.1 13.4 12.0
4. Other surtax net income
= $20,000;
original investment
= $100,000:
Average annual yield from capital
gains after Federal income taxes 9.4 9.2 8.7 8.3
Gross annual investment yield
required for equal, return after
Federal income taxes 12.0 11.7 11.1 10.6
5. Other surtax net income
= $5,000;
original investment
= $25,000:
Average annual yield from capital
gains after Federal income taxes 9.8 9.7 9.5 9.3
Gross annual investment yield
required for equal return after
Federal income taxes 10.7 10.6 10.4 10.2
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Plus one day.
END OF FOOTNOTE
Table IV
Average annual rate of gross capital gains, compounded annually,
required to equal net yield after Federal income taxes from 3 1/2
percent taxable bond
Selected Cases Years capital, assets held /1/
10 5 2 1
1. Other surtax net income
= 200,000; bond investment
= 1,000,000
Bond yield after taxes 1.2 1.2 1.2 1.2
Average annual capital gain
required for equal return
after Federal income taxes 1.5 1.6 2.0 2.5
2. Other surtax net income
= 100,000; bond investment
= 500,000
Bond yield after taxes 1.3 1.3 1.3 1.3
Average annual capital gain
required for equal return
after Federal income taxes 1.6 1.8 2.1 2.6
3. Other surtax net income
= 50,000; bond investment
= 250,000
Bond yield after taxes 2.2 2.2 2.2 2.2
Average annual capital gain
required for equal return
after Federal income taxes 2.5 2.6 2.8 3.1
4. Other surtax net income
= 20,000; bond investment
= 100,000
Bond yield after taxes 2.8 2.8 2.8 2.8
Average annual capital gain
required for equal return
after Federal income taxes 3.0 3.0 3.2 3.3
5. Other surtax net income
= 5,000; bond investment
= 25,000
Bond yield after taxes 3.2 3.2 3.2 3.2
Average annual capital gain
required for equal return
after Federal income taxes 3.3 3.3 3.4 3.4
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Plus one day.
END OF FOOTNOTE
Table V
Average annual rate of gross capital gains, compounded annually,
required to equal net yield after Federal income taxes from 3
percent fully tax-exempt bond
Selected Cases Years capital, assets held /1/
10 5 2 1
1. Other surtax net income
= 200,000; bond investment
= 1,000,000
Bond yield 3.0 3.0 3.0 3.0
Average annual capital gain
required for equal return
after Federal income taxes 3.7 4.0 4.9 6.4
2. Other surtax net income
= 100,000; bond investment
= 500,000
Bond yield 3.0 3.0 3.0 3.0
Average annual capital gain
required for equal return
after Federal income taxes 3.6 3.9 4.7 6.0
3. Other surtax net income
= 50,000; bond investment
= 250,000
Bond yield 3.0 3.0 3.0 3.0
Average annual capital gain
required for equal return
after Federal income taxes 3.4 3.5 3.8 4.2
4. Other surtax net income
= 20,000; bond investment
= 100,000
Bond yield 3.0 3.0 3.0 3.0
Average annual capital gain
required for equal return
after Federal income taxes 3.2 3.3 3.4 3.6
5. Other surtax net income
= 5,000; bond equivalent
= 25,000
Bond yield 3.0 3.0 3.0 3.0
Average annual capital gain
required for equal return
after Federal income taxes 3.1 3.1 3.2 3.2
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Plus one day.
END OF FOOTNOTE
Table VI
Profits and Losses from Sale of Assets as Reported in Individual
Returns Showing Net Income /1/
(In millions of dollars)
Profit from sale of assets
Other than
Taxed as taxed as
Taxable capital capital
year net gain net gain Total
1922 249.2 742.1 991.3
1923 305.4 866.8 1,172.2
1924 389.1 1,124.6 1,513.7
1925 940.6 1,991.7 2,932.3
1926 912.9 1,465.6 2,378.5
1927 1,081.2 1,813.4 2,894.6
1928 1,879.8 2,928.1 4,807.9
1929 2,346.7 2,337.9 4,684.6
1930 556.4 636.7 1,193.1
1931 169.9 301.7 471.6
1932 50.1 112.8 162.9
1933 133.6 419.6 553.2
Losses from sale of assets
Net loss from
sale of assets
other than
Total reported for Aggregate
capital tax credit profits
Taxable net loss on capital less
year /2/ net loss Total losses
1922 /3/
1923 /3/
1924 72.0 /3/
1925 61.6 /3/
1926 34.4 178.2 212.6 2,165.9
1927 48.0 227.9 275.9 2,618.7
1928 40.8 171.7 212.5 4,595.4
1929 43.2 995.9 1,039.1 3,645.5
1930 80.8 1,232.8 1,313.6 - 120.5
1931 239.9 1,160.8 1,400.7 - 929.1
1932 832.4 375.4 1,207.8 - 1,044.9
1933 553.8 365.8 919.6 - 366.4
Treasury Department, Division of Research and Statistics.
FOOTNOTES TO TABLE
/1/ The comparability of the figures between years is effected
by (1) changes in individuals required to file returns; (2)
estimates for net incomes under $5,000; and (3) changes in the
statutory treatment of capital gains and losses, which are detailed
in Section III (pages 8, 9, 10 and 12).
/2/ No figures for capital net losses are available for years
prior to the taxable year 1924. The figures shown for the years 1924
through 1930 were obtained through the capitalization of the 12 1/2
percent tax credit on capital net losses as reported in STATISTICS
OF INCOME; and are incomplete because the tax credit was computed
only on that amount of the taxpayers' capital net loss which was
necessary to offset his tax. The figures for the years 1931-1933 are
the actual capital net losses which were tabulated and reported in
STATISTICS OF INCOME.
/3/ Not available
END OF FOOTNOTES
Source of data: STATISTICS OF INCOME.
Table VII
Percentage of total net profits on sale of capital assets derived
from assets held for two years or less, or from assets held for
longer periods by persons subject to tax thereon of 12 1/2 percent
or less /1/
Net income classes
Under 50,000- 100,000 Aggregate --
Date 50,000 /2/ 100,000 and over all classes
1922 97.6 45.2 17.6 74.9
1923 97.4 33.4 6.9 73.9
1924 96.6 46.4 16.3 74.3
1925 98.2 58.0 24.3 67.9
1926 97.7 46.2 18.0 61.6
1927 97.7 51.1 24.2 62.6
1928 97.5 58.9 31.3 60.9
1929 98.4 49.1 15.9 49.9
1930 97.6 32.8 8.3 53.4
1931 98.4 33.7 11.0 64.0
1932 91.7 30.4 15.6 69.2
1933 95.3 67.6 29.8 75.9
1922-1933 97.6 50.9 21.3 62.1
Treasury Department, Division of Research and Statistics
FOOTNOTES TO TABLE
/1/ For factors effecting the comparability of the data from
year to year, see note 1 to Table VI.
/2/ The percentages for the income class of less than $50,000
are not comparable with the percentages for the other groups,
because the former include a substantial part of the profits on sale
of assets held for more than two years, whereas the others do not.
END OF FOOTNOTES
Source of data: STATISTICS OF INCOME.
Table VIII
Net Gains from Sale of Capital Assets in 1934 by Net Income Classes
and Statutory Periods that Assets Were Held /1/
(In thousands of dollars)
1 year
Net Income and 1 - 2 2 - 5 5 - 10
classes under years years years
0 - 5 21,875 8,982 6,205 2,900
5 - 25 45,352 21,975 9,397 2,727
25 - 50 15,150 6,868 3,293 253
50 - 100 8,888 4,907 962 1,389
Over 100 6,772 4,143 138 2,077
Aggregate 98,067 46,875 19,995 9,346
Net income Over 10 Not
classes years stated Aggregate
0 - 5 13,577 2,870 56,409
5 - 25 28,830 4,178 112,489
25 - 50 15,499 1,548 42,611
50 - 100 9,558 971 26,675
Over 100 34,396 1,480 49,006
Aggregate 101,860 11,047 287,190
(Percentages of totals for each class)
1 year
Net Income and 1 - 2 2 - 5 5 - 10
classes under years years years
0 - 5 38.8 15.9 11.0 5.1
5 - 25 40.4 19.5 8.4 2.4
25 - 50 35.6 16.1 7.7 .6
50 - 100 33.4 18.4 3.6 5.2
Over 100 13.8 8.5 .3 4.2
Aggregate 34.1 16.3 7.0 3.3
Net income Over 10 Not
classes years stated Aggregate
0 - 5 24.1 5.1 100.0
5 - 25 25.6 3.7 100.0
25 - 50 36.4 3.6 100.0
50 - 100 35.8 3.6 100.0
Over 100 70.2 3.0 100.0
Aggregate 35.5 3.9 100.0
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Excludes net capital gains of returns reporting net
deficits.
Note: The change in treatment of capital gains and losses
by the Revenue Act of 1934 makes the statistics on capital
gains and losses for that year incomparable with those for
prior years. In the first place, the capital gains realized by
members of partnerships and beneficiaries of trusts and estates
cease to be detailed in their individual returns; so that the
data for capital gains realized by individuals in 1934 do not
include the capital gains realized by partnerships and
fiduciaries in which they held interests.
In the second place, the abandonment of the special
treatment of capital gains and losses from the sale of assets
held for more than two years, and the substitution of the
five-step system, results in the offsetting, in some cases, of
gains realized from the sale of assets held two years or less,
against losses from the sale of assets held more than two
years, and vice versa. Previously, a net positive or negative
balance was determined both for the capital gains and losses
included in ordinary income and for the capital gains and
losses subjected to the special treatment. Thus, where two
separate net balances have been determined, only one net
balance is available under the five-step system.
Finally, the five-step system makes it possible for
returns showing net capital gains, when 100 percent of their
capital gains and losses are considered, to show net capital
losses after application of the percentage brackets, and,
similarly, returns showing aggregate net capital losses before
application of the statutory percentages may show net capital
gains after the percentages are applied. Hence, the statistics
for 1934, wherein the net capital gains returns are separated
from the net capital loss returns on the basis of the net
balance existing after the operation of the statutory
percentages, necessarily include certain amounts which would
have formerly been excluded, and vice versa.
The tabulations of the 1934 data were the result of a Work
Relief Project sponsored by the Division of Research and
Statistics, Treasury Department. Not all of the 1934 returns
were included in the survey, however, inasmuch as certain
returns were in the field or in Washington in the process of
audit, et cetera. In general, the incompleteness was
concentrated in the lower income classes where, because of the
larger number of cases, it had the minimum effect upon the
reliability of the figures. In addition to these differences
from the Statistics of Income data, the source of the figures
for the special tabulation was Schedule C (Statement of Capital
Gains and Losses), whereas the Statistics of Income data were
tabulated from the face of the return.
END OF FOOTNOTE
Table IX
Percentages whereby Capital Gains Taxes Payable under Improved
Step-Down Schedule would be Greater than those under Present
Schedule, for Selected Cases
Surtax Net Income No. of Years Assets were Held /1/
From Other Sources 1 2 5 10
A. Assuming net capital gains equal
to surtax net income from other sources
5,000 0.0 28.8 52.9 90.4
10,000 0.0 31.3 56.5 92.6
20,000 0.0 28.8 54.8 94.3
50,000 0.0 32.0 62.1 102.9
100,000 0.0 25.7 50.8 83.9
500,000 0.0 25.6 50.7 83.8
B. Assuming net capital gain of $50,000
for each selected surtax net income from other sources
5,000 0.0 38.9 82.7 149.7
10,000 0.0 36.6 72.0 125.1
20,000 0.0 35.1 63.9 104.9
50,000 0.0 32.0 62.1 102.9
100,000 0.0 25.0 50.0 83.3
500,000 0.0 25.0 50.0 83.3
Treasury Department, Division of Research and Statistics
FOOTNOTE TO TABLE
/1/ Plus one day.
Note: The improved schedule would provide for the
inclusion in net income of the following percentages of net
capital gains and losses, according to number of years held:
1-2 years, 80 percent; 2-3 years, 75 percent; 3-4 years, 70
percent; 4-5 years 65 percent; 5-10 years, 60 percent; over 10
years, 55 percent.
END OF FOOTNOTE
Table X
Percentages by which Income Taxes Payable upon Capital Gains would
be Less under Improved Step-Down Schedule /1/ than they would be if
the Realized Gains were Taxed on the "Accrual Basis" /2/ for
Selected Cases
Surtax Net Income No. of Years Assets were Held /3/
From Other Sources 1 2 3 4 5 10
A. Assuming net capital gains equal
to surtax net income from other sources
5,000 21.7 22.1 26.2 30.5 35.0 40.5
10,000 25.0 19.9 23.7 29.0 34.5 40.5
20,000 22.7 21.7 24.8 29.5 35.0 37.6
50,000 24.3 17.8 19.1 23.3 29.5 33.6
100,000 20.3 24.2 29.4 34.5 39.7 44.8
500,000 20.3 24.3 29.5 34.6 39.7 44.9
B. Assuming not capital gain of $50,000
for each selected surtax not income from other sources
5,000 29.4 9.3 - 1.1 - 3.1 1.5 1.2
10,000 28.9 12.7 9.1 8.9 11.5 9.6
20,000 27.6 15.2 16.9 21.9 28.6 32.0
50,000 24.3 17.8 19.1 23.3 29.5 33.6
100,000 20.0 25.0 30.0 35.0 40.0 45.0
500,000 20.0 25.0 30.0 35.0 40.0 45.0
Treasury Department, Division of Research and Statistics
FOOTNOTES TO TABLE
/1/ The improved schedule would provide for the inclusion in
net income of the following percentages of not capital gains and
losses, according to number of years held: 1-2 years, 80 percent;
2-3 years, 75 percent; 3-4 years, 70 percent; 4-5 years, 65 percent;
5-10 years, 60 percent; over 10 years, 55 percent.
/2/ For a description of the "accrual basis," see p. 14.
/3/ Plus one day.
END OF FOOTNOTES
Table XI
Percentages by which Income Taxes Payable upon Capital Gains would
be greater under the "Accrual Basis." /1/ than under the Present
Five-Step System for Selected Surtax Net Incomes
Surtax Net Income Number of Years Assets were Held /2/
From Other Sources 1 2 5 10
A. Assuming net capital gains equal
to surtax net income from other sources
5,000 27.8 65.4 135.3 220.0
10,000 33.3 63.9 139.1 223.5
20,000 29.4 64.6 138.1 211.5
50,000 32.1 60.5 129.9 205.4
100,000 25.5 65.8 150.0 233.3
500,000 25.4 65.9 150.0 233.3
B. Assuming net capital gain of $50,000
for each selected surtax net income from other sources
5,000 41.7 53.2 85.5 152.7
10,000 40.7 56.5 34.3 148.9
20,000 38.1 59.4 129.5 201.5
50,000 32.1 60.5 129.9 205.4
100,000 25.0 66.7 150.0 233.3
500,000 25.0 66.7 150.0 233.3
Treasury Department, Division of Research and Statistics
FOOTNOTES TO TABLE
/1/ For a description of the "accrual basis," see p. 14.
/2/ Plus one day.
END OF FOOTNOTES
Table XII
Book Value and Closing Market Prices of the Fifteen Most Active
Stocks on the New York Stock Exchange on December 31, 1936 (Listed
in order of activity)
Book value Market price
per share per share
Ohio Oil Company $11.86 $17-3/4
General Motors Corporation 18.46 63-1/2
Paramount Pictures, Inc. 11.23 24-1/2
Socony Vacuum Oil Company, Inc. 19.98 16-7/8
Consolidated Oil Corporation 17.86 16-7/8
Columbia Gas and Electric Corporation 17.36 18-3/8
Pure Oil Company 22.60 20-7/8
Radio Corporation of America 3.10 11-1/2
United Air Lines Transport Corporation 8.48 22
United States Steel Corporation 138.37 78
Warner Bros. Pictures, Inc. 22.69 17-3/4
Pierce Petroleum Corporation 7.55 3-1/2
Commonwealth and Southern Corporation 5.27 3-3/8
Consolidated Textile Corporation 1.14 7/8
Anaconda Copper Mining Company 55.88 53-1/2
Source: Moody's Investment Service.
Table XIII
Comparison of changes in market and book values of common stocks of
railroad equipment and iron and steel companies, 1932-1936 /1/
Company Book value per share
Dec. 31, Dec. 31, Percent
1932 1936 change
Railroad Equipment
American Brake Shoe and $27.67 $27.98 +1.1
Foundry Company
American Car and Foundry 99.88 90.10 -9.8
Company /2/
American Locomotive Company 68.80 20.91 -69.6
American Steel Foundries 42.11 38.10 -9.5
Baldwin Locomotive Works 40.55 13.78 -66.0
General American 64.82 62.64 -3.4
Transportation Corporation
General Railway 32.91 29.55 -10.2
Signal Company
Pullman, Inc. 69.58 60.72 -12.7
Union Tank Car Company 30.26 29.65 -2.0
Westinghouse Air 17.65 14.43 -18.2
Brake Company
Steel and Iron
American Rolling 30.84 31.74 +2.9
Mill Company
Bethlehem Steel Corporation 126.60 113.02 -10.7
Byers (A. M.) Company 56.43 44.06 -21.9
Colorado Fuel and 38.77 32.63 -15.8
Iron Corporation
Crucible Steel Company 150.56 160.80 +6.8
of America
Inland Steel Company 49.28 53.27 +8.1
National Steel Corporation 47.41 50.97 +7.5
U.S. Pipe and Foundry 37.38 37.17 -.6
Company
U.S. Steel Corporation 168.84 129.03 -23.6
Youngstown Sheet and 91.53 76.66 -16.2
Tube Company
Republic Steel Corporation 68.47 38.53 -43.7
Company Market value per share
Dec. 31, Dec. 31, Percent
1932 1936 change
Railroad Equipment
American Brake Shoe and $9.63 $69.00 +616.5
Foundry Company
American Car and Foundry 7.00 59.25 +746.4
Company /2/
American Locomotive Company 5.88 45.75 +678.1
American Steel Foundries 5.63 61.88 +999.1
Baldwin Locomotive Works 4.50 9.50 +111.1
General American 17.00 73.38 +331.6
Transportation Corporation
General Railway 13.25 56.50 +326.4
Signal Company
Pullman, Inc. 18.88 68.50 +262.8
Union Tank Car Company 12.00 26.75 +122.9
Westinghouse Air 11.25 50.00 +344.4
Brake Company
Steel and Iron
American Rolling 8.00 34.75 +334.4
Mill Company
Bethlehem Steel Corporation 14.75 75.50 +411.9
Byers (A. M.) Company 13.25 28.25 +113.2
Colorado Fuel and 4.50 45.63 +914.0
Iron Corporation
Crucible Steel Company 20.00 53.63 +168.2
of America
Inland Steel Company 12.75 117.50 +821.6
National Steel Corporation 20.00 71.50 +257.5
U.S. Pipe and Foundry 9.50 63.00 +563.2
Company
U.S. Steel Corporation 27.50 78.00 +183.6
Youngstown Sheet and 9.88 78.00 +689.5
Tube Company
Republic Steel Corporation 5.50 28.75 +422.7
FOOTNOTES TO TABLE
/1/ All railroad equipment and iron and steel companies
included in Standard Statistics Co. averages.
/2/ 1932 figures for year ended April 30, 1933; 1936 figures
for year ended April 30, 1936.
END OF FOOTNOTES
Table XIV
Percentages by Which Present Capital Gains Taxes would be Reduced or
Increased By Subjecting Capital Gains to Normal Tax Plus one-half of
Surtax Rates, in Lieu of Present Step-Down Provisions, for Selected
Cases
Surtax net income Number of years assets were held /1/
from other sources 1 2 5 10
A. Assuming net capital gains equal
to surtax net income from other sources
5,000 - 8.3 + 26.9 + 94.1 + 164.0
10,000 - 13.7 + 22.2 + 91.3 + 158.8
20,000 - 24.2 + 5.0 + 62.5 + 123.8
50,000 - 28.5 + 1.9 + 65.2 + 129.5
100,000 - 33.3 - 10.4 + 35.1 + 80.1
500,000 - 33.9 - 11.4 + 33.4 + 77.9
B. Assuming net capital gain of $50,000
for each selected surtax net income from other sources
5,000 - 16.5 + 27.8 + 133.4 + 262.9
10,000 - 18.6 + 21.8 + 109.4 + 209.3
20,000 - 22.1 + 15.2 + 88.8 + 162.7
50,000 - 28.5 + 1.9 + 65.2 + 129.5
100,000 - 33.5 - 11.3 + 33.1 + 77.4
500,000 - 34.1 - 12.2 + 31.8 + 75.7
FOOTNOTE TO TABLE
/1/ Plus one day.
END OF FOOTNOTE
Table XV
Percentages by which Capital Gains Taxes would be Smaller or Greater
if Capital Gains were subjected to Normal Tax Plus One-half of
Surtax Rates than they would be under the "Accrual Basis" /1/ for
Selected Cases
Surtax Net Income Number of years assets were held /2/
From Other Sources 1 2 5 10
A. Assuming net capital gains equal
to surtax net income from other sources
5,000 - 28.3 - 23.3 - 17.5 - 17.5
10,000 - 35.3 - 25.4 - 20.0 - 20.0
20,000 - 41.4 - 36.2 - 31.8 - 28.2
50,000 - 45.9 - 36.5 - 28.1 - 24.9
100,000 - 46.8 - 46.0 - 46.0 - 46.0
500,000 - 47.3 - 46.6 - 46.6 - 46.6
B. Assuming net capital gain of $50,000
for each selected surtax net income from other sources
5,000 - 41.1 - 16.6 + 25.8 + 43.6
10,000 - 42.1 - 22.2 + 7.8 + 24.2
20,000 - 43.6 - 27.8 - 17.8 - 12.9
50,000 - 45.9 - 36.5 - 28.1 - 24.9
100,000 - 46.8 - 46.8 - 46.8 - 46.8
500,000 - 47.3 - 47.3 - 47.3 - 47.3
FOOTNOTES TO TABLE
/1/ For a description of "accrual basis", see page 14.
/2/ Plus one day.
END OF FOOTNOTES
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