Ending the Inflation Tax on Capital Gains Will Help Millions of Middle Class Households

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Posted by Tom Hebert on Saturday, August 31st, 2019, 11:00 AM PERMALINK

Indexing capital gains taxes to inflation would benefit millions of middle income households. 

ATR looked at Internal Revenue Service data from 2016 (the most recent available data) to determine what percentage of middle class households had a capital gains filing:

24,139,920 households had a capital gains filing.

56% (13,487,170) of capital gains households made less than $100,000.

82% (19,695,490) of capital gains households made less than $200,000.

In Pennsylvania, more than one million households had a capital gains filing in 2016. 60 percent of these households made less than $100,000, and 84 percent of households made less than $200,000. 

These results are just from one year. Imagine how many middle income households would be helped over the course of a decade by ending the inflation tax.

The breakdown for all 50 states is below. 

Alabama
226,500 households had a capital gains filing.
132,140 (58%) made less than $100k
191,350 (85%) made less than $200k

Alaska
50,380 households had a capital gains filing. 
26,830 (53%) made less than $100k
42,000 (83%) made less than $200k

Arizona
468,470 households had a capital gains filing. 
280,680 (60%) made less than $100k
398,060 (85%) made less than $200k

Arkansas
149,030 households had a capital gains filing. 
93,700 (63%) made less than $100k
128,600 (86%) made less than $200k

California
3,036,260 households had a capital gains filing.
1,489,030 (49%) made less than $100k
2,297,060 (76%) made less than $200k

Colorado
528,160 households had a capital gains filing.
287,880 (55%) made less than $100k
431,940 (82%) made less than $200k

Connecticut
370,530 households had a capital gains filing. 
185,720 (50%) made less than $100k
283,540 (77%) made less than $200k

Delaware
74,220 households had a capital gains filing. 
41,910 (57%) made less than $100k
62,780 (85%) made less than $200k

Florida
1,481,850 households had a capital gains filing.
896,240 (61%) made less than $100k
1,240,750 (84%) made less than $200k

Georgia
565,790 households had a capital gains filing. 
299,930 (53%) made less than $100k
452,150 (80%) made less than $200k

Hawaii 
Note: 2015 data presented. 2016 data unavailable. 
115,420 households had a capital gains filing.
69,370 made less than $100k
100,680 made less than $200k

Idaho
121,910 households had a capital gains filing.
80,600 (66%) made less than $100k
108,130 (89%) made less than $200k

Illinois
1,080,400 households had a capital gains filing. 
589,230 (55%) made less than $100k
877,810 (81%) made less than $200k

Indiana
426,670 households had a capital gains filing. 
270,410 (63%) made less than $100k
371,080 (87%) made less than $200k

Iowa
266,630 households had a capital gains filing.
170,630 (64%) made less than $100k
236,240 (89%) made less than $200k

Kansas
236,020 households had a capital gains filing.
146,750 (62%) made less than $100k
204,140 (87%) made less than $200k

Kentucky
231,590 households had a capital gains filing.
145,380 (63%) made less than $100k
200,410 (87%) made less than $200k

Louisiana
238,420 households had a capital gains filing. 
138,840 (58%) made less than $100k
198,750 (83%) made less than $200k

Maine
103,550 households had a capital gains filing. 
68,010 (66%) made less than $100k
91,300 (88%) made less than $200k

Maryland
485,940 households had a capital gains filing. 
228,570 (47%) made less than $100k
378,940 (78%) made less than $200k

Massachusetts
682,790 households had a capital gains filing.
329,540 (48%) made less than $100k
515,440 (75%) made less than $200k

Michigan
757,870 households had a capital gains filing.
473,780 (63%) made less than $100k
654,980 (86%) made less than $200k

Minnesota
534,310 households had a capital gains filing.
278,180 (52%) made less than $100k
418,190 (78%) made less than $200k

Mississippi
111,550 households had a capital gains filing
68,480 (61%) made less than $100k
96,130 (86%) made less than $200k

Missouri
453,470 households had a capital gains filing.
288,740 (64%) made less than $100k
394,870 (87%) made less than $200k

Montana
99,880 households had a capital gains filing.
69,030 (69%) made less than $100k
89,680 (90%) made less than $200k

Nebraska
172,900 households had a capital gains filing. 
110,470 (64%) made less than $100k
152,840 (88%) made less than $200k

Nevada
176,340 households had a capital gains filing. 
106,420 (60%) made less than $100k
148,570 (84%) made less than $200k

New Hampshire
130,390 households had a capital gains filing.
71,210 (55%) made less than $100k
107,560 (83%) made less than $200k

New Jersey
889,750 households had a capital gains filing. 
436,310 (49%) made less than $100k
678,400 (76%) made less than $200k

New Mexico
114,520 households had a capital gains filing. 
71,420 (62%) made less than $100k
100,160 (88%) made less than $200k

New York
1,667,340 households had a capital gains filing.
907,220 (54%) made less than $100k
1,321,100 (79%) made less than $200k

North Carolina
670,350 households had a capital gains filing.
383,900 (57%) made less than $100k
557,750 (83%) made less than $200k

North Dakota
66,670 households had a capital gains filing
40,660 (61%) made less than $100k
57,970 (87%) made less than $200k

Ohio
832,260 households had a capital gains filing.
522,480 (63%) made less than $100k
718,890 (86%) made less than $200k

Oklahoma
204,400 households had a capital gains filing.
125,070 (61%) made less than $100k
174,380 (85%) made less than $200k

Oregon
356,920 households had a capital gains filing. 
211,730 (59%) made less than $100k
303,800 (85%) made less than $200k

Pennsylvania
1,082,680 households had a capital gains filing.
647,490 (60%) made less than $100k
911,900 (84%) made less than $200k

Rhode Island
81,930 households had a capital gains filing. 
46,140 (56%) made less than $100k
68,630 (84%) made less than $200k

South Carolina
303,650 households had a capital gains filing. 
180,170 (59%) made less than $100k
258,450 (85%) made less than $200k

South Dakota
81,840 households had a capital gains filing. 
53,760 (66%) made less than $100k
72,290 (88%) made less than $200k

Tennessee
361,910 households had a capital gains filing.
213,120 (59%) made less than $100k
301,140 (83%) made less than $200k 

Texas
1,510,740 households had a capital gains filing.
765,970 (51%) made less than $100k
1,179,050 (78%) made less than $200k

Utah
181,300 households had a capital gains filing. 
103,490 (57%) made less than $100k
152,350 (84%) made less than $200k

Vermont
63,770 households had a capital gains filing.
41,650 (65%) made less than $100k
56,380 (88%) made less than $200k

Virginia
700,430 households had a capital gains filing. 
334,720 (48%) made less than $100k
550,050 (79%) made less than $200k

Washington
675,760 households had a capital gains filing.
347,390 (52%) made less than $100k
538,630 (80%) made less than $200k

West Virginia
79,490 households had a capital gains filing. 
52,840 (67%) made less than $100k
70,800 (89%) made less than $200k

Wisconsin
541,240 households had a capital gains filing.
353,220 (65%) made less than $100k
479,990 (89%) made less than $200k

Wyoming
49,480 households had a capital gains filing. 
31,010 (63%) made less than $100k
43,280 (87%) made less than $200k

Photo Credit: SalFalko

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