But the gist is that when you plot the capital gains rate and stock market curves on the same graph, there's no dependency, which is counter-intuitive. However,
1) Endowments, pension funds and 401k's don't care about capital gains tax rate as they're shieleded at 0%
2) Foreign buyers are exempt from US rates as long as they pay their home country rates and there's a double-taxation agreement in place
3) People don't choose to buy less, people just choose to sell less. Combined with fairly stable demand generated from (1) and (2) the price of quality assets actually tends to grow faster in high-capital-gains-tax years than in low-capital-gains-tax years.
What's correlated with higher capital gains taxes is brokerage profits - sellers don't sell as frivolously.