Okay, I am about to plead ignorance on this one. I have been hearing about these things for years and years and to be honest never really understand what these people were talking about so I decided to look it up and see what the deal was.
A capital gains apparently is a profit made on things like stocks, bonds, precious metals and property. So basically, things that you buy and sell at a profit.
So here is what I don't understand. Aren't individuals and corporations already taxed on their income? Why differentiate between regular income and capital gains income? That does not make sense to me. I guess in reading about them, I am opposed to capital gains tax because it is redundant and stupid.