General Discussion
In reply to the discussion: No, the capital gains tax is not “taxing the same income twice" [View all]quaker bill
(8,224 posts)Every time a reported dollar changes hands, it is taxed, unless you donate it to a tax exempt charity. I make and sell art jewelry at art festivals. Every single dollar I get for a piece was taxed before the customer came to me to spend it, it most likely was taxed before they earned it, and I pay taxes on it again when I receive it. There is some left over and if I spend it on anything other than supplies to make new work, I pay taxes on it again. The people I purchase from pay taxes on that dollar again, and the cycle continues until the dollar is literally gone.
It is really not different that if I were to buy and sell stock. I don't currently, I buy, work on, and then sell semi precious gems and precious metals. I work hard to assure that these investments gain value and that I sell them for more than I pay for them (thus comes profit).
At one point earlier in life, I inherited a bit of money and bought and sold stock. I did not use a hammer, files, saws and a torch, but I did use tools (the internet) to attempt to assure that what I sold was worth more than I paid for it (thus comes profit - but they call it capital gains). The money was taxed when I made a profit from these transactions.
Both should be taxed the same.