Jonathan R. Kesselman (Simon Fraser University, Vancouver) has published Reform U.S. Capital Gains Taxation à la Canada, The Economists’ Voice, Vol. 2: No. 3, Article 1 (2005) (Berkeley Electronic Press). Here is the abstract:

Reformed taxation of capital gains could play an important role in a broader policy package to improve the simplicity, equity, and efficiency of the federal tax system. Constructive reforms for the United States would draw on Canadian provisions for taxing capital gains: a) eliminate the distinction between short-term and long-term gains, taxing both equally; b) use an average-cost basis for computing capital gains on all holdings of a security; c) apply a fixed tax inclusion rate for net capital gains; d) eliminate the $3,000 offset of taxable income for net capital losses; and e) adopt “deemed realization” of capital gains on death to facilitate quick abolition of the estate tax.