| SamuelRSmith said: Obviously, I do not agree with any taxation, of any kind, at any level. But most economists will agree that capital gains tax is one of the worst taxes. Rather than list all the reasons why, here's somebody else doing it for me: http://www.interest.co.nz/opinion/54435/opinion-why-capital-gains-tax-very-very-bad-idea |
Capital gains is the profit one makes from selling a capital asset:
http://en.wikipedia.org/wiki/Capital_gain
One can argue with the problems of double taxation. But, to end up saying there should be no tax on it, at any point, would end up causing the upper class to be able to totally exempt itself from the tax system. They then become parasites who end up having much influence on things, get benefits of a society, and contribute nothing. Also, you end up skewing economic activity towards the selling of capital assets. By the way, it isn't just capital gains that doesn't get taxed by Ryan's plan but also income derived from owning assets, such as paid dividends. And you abolish the inheritance tax to. You end up creating a class of individuals who own most of the assets but pay no taxes. Maybe you think that is a good idea though.
