Canadian here and our new budget gets most of it’s new money from a new capital gains tax. Can you explain what they are, and surrounding context? Thanks!
In: Economics
It is a gain, or profit, on invested capital. If you invest in something and sell the investment for more than the initial cost and maintenance, that is a *Capital Gain*. You buy a beaver for one hundred dollars, you feed him fifty dollars worth of food, you then sell your beaver for two hundred loonies for a profit of fifty bucks Canadian (like ten bucks in real money)
We used to call it unearned income, before that we called it excess income. People thought by giving it an obscure name, they could convince people that it was basically a sin to tax the sacred profits.
Latest Answers