A recent study found that taxing capital gains and dividends as ordinary income, subject to a maximum 28% rate on long-term capital gains (the pre-1997 rate), could finance a cut in the corporate-tax rate from 35% to 26%. Such a change would reduce corporations’ incentives to move investments abroad or shift profits to low-tax jurisdictions, while increasing the progressivity of tax outcomes by shifting more of the burden of corporate taxation from labor to capital owners.