A Capital Gains Tax Primer

A Primer By The Wall Street Journal

I did not have to write my own, the Wall Street Journal did a fine job by publishing one in the US weekend edition (9/22/2012) titled “A Capital Gains Primer” (Unfortunately by subscription only). I think this great newspaper is doing the general public a disfavor not to make this good article available.

Brief Summary

In the US, capital gains taxes are a form of double taxation, because business profits are taxed first, then their distribution to investors.

All Americans investing in the stock market or directly in enterprises benefit from low capital gains taxes. American employees benefit from higher business investments through better employment opportunities and higher wages. Thus, those who claim only “millionaires and billionaires” are populist demagogues who do not have the slightest clue how a free market economy works.