Net capital gains reported by resident tax filers climbed as high as $120 billion in 2000 (equal to percent of personal income) and $132 billion in 2007 ( percent of personal income), as shown in Figure 10. Such increases were driven by “asset bubbles” in the stock market and/or the real estate market. Net capital gains fell to $29 billion in 2009 ( percent of personal income) before rising, along with the recovery in the stock market, to $55 billion in 2010 ( percent of personal income). While the stock market has grown fairly well during much of the time since then, we assume that net capital gains.
