Capital Gains Taxes – Part 2

I will now prove how good I am at debate. I am so good that I can argue both sides of an issue. I will proceed to argue against my last post.

It is sometimes true that capital gains taxes are double taxation. Corporations pay high taxes on their profits. This negatively affects the price of their stock. The little bit that the stock increases in value is taxed again if the investor sells it and reports capital gain.

But not all capital gains are from stocks. If someone invests in gold and sells it at a profit, it’s pure profit. No corporate taxes have been paid.

Or is it pure profit? There is that awful word inflation, but I’ll leave that for my next post.