# History shows capital gains tax don’t have much, if any, effect on stock-market returns (should apply to crypto as well)
* In the most recent example, **capital-gains tax rates jumped by nearly 9 percentage points in 2013 but stocks rose 30% that year**
* **No correlation** found between capital-gains tax rates and equity market valuations
* Ultimately, **other factors** such as the outlook for economic growth, monetary policy, and interest rates are much more powerful drivers of equity market returns and valuations.
# Chart showing S&P 500’s performance following four past hikes in the capital-gains rate going back to 1969
* In fact, the past two times we had an increase in the capital-gains tax stocks did really well for the next six months in 1987 and 2013.
* Stocks did poorly after the hikes of 1969 and 1976, which seems to make for a mixed bag. But Detrick noted that the economy was already performing poorly in 1969 and 1976, while it was healthy in 1987 and 2013.
# For Crypto, capital gains tax may encouraging Hodling behavior and discourage Selling
Already in many subreddits, we see people trying to Hodl for one year or more in various attempts to reduce their tax payable (legally).
More Hodling and less selling is logically good for the price of Crypto!
View Reddit by ethereum88 – View Source