*The official estimates do not show individual and corporate capital gains tax cuts separately. Breakdown here is based on more detailed estimates of earlier proposals.
Notes: Individual capital gains estimates were adjusted by using an elasticity of -0.25 rather than the -0.7 used by Congress (a compromise between the congressional approach and recent research indicating a likely elasticity of close to zero. Corporate capital gains estimates were adjusted by using an elasticity of -0.10 rather than the -0.25 used by Congress. Corporate AMT estimates were adjusted by including estimated reductions in regular corporate tax payments due to increased use of tax breaks now foreclosed by the existence of the AMT. Independent contractor estimates were adjusted by estimating that a million workers would shift to independent contractor status, rather than the 50,000 apparently assumed by Congress. "Change in budgetary treatment of certain expiring items" was adjusted by treating it as not a real change in policy.
Citizens for Tax Justice, July 1, 1997