"The 1997 long-term capital-gains tax cut from 28 percent to 20 percent produced a measurable stock-price response favoring firms whose returns depended more heavily on capital gains."
Shackelford reports that non-dividend-paying firms returned 6.8 percentage points more than other firms during the May 1997 week when Congress and the White House agreed to reduce the long-term capital-gains rate from 28 percent to 20 percent.
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