Laffer strikes again: Dynamic scoring of capital taxes

► We identify how capital taxation affects tax revenue in general equilibrium. ► Our scoring of capital tax revenue takes adjustment dynamics after a tax change into account. ► The self-financing degree of corporate tax cuts is about 70-90%. ► The Laffer curve is very flat for all capital taxes. ► US tax revenue would increase by about 0.3-1.2% after abolishment of capital gains tax.