Realized Capital Gains Are Sensitive To Tax Rates

From Tax Foundation, "JCT Report Shows Capital Gains are Sensitive to Taxation" September 25, 2019, by Scott Eastman:

Earlier this month, the Joint Committee on Taxation (JCT) reminded us that capital gains taxes can drastically impact realizations. This is because taxpayers can choose when they sell an asset and pay capital gains taxes. This effect could be eliminated by taxing all capital gains under a mark-to-market system. Mark-to-market taxation of capital gains would eliminate this realization effect but also increase taxes on saving.

Under current law, capital gains—or the value of an asset in excess of its cost basis— are not taxed until an asset is sold (or “realized”). The option to time when capital gains are realized allows taxpayers to minimize their tax bill, and makes capital gain realizations sensitive to tax rates.

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Source: Tax Foundation