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Capital gains
The profit from the sale of a capital asset, such as a share or a property. Capital gains are subject to taxation in most countries. Some economists argue that capital gains should be taxed lightly (if at all) compared with other sources of income. They argue that the less tax is levied on capital gains, the greater is the incentive to put capital to productive use. Put another way, capital gains tax is effectively a tax on capitalism. However, if capital gains are given too friendly a treatment by the tax authorities, accountants will no doubt invent all sorts of creative ways to disguise other income as capital gains.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
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