"The IEA continues to show the vitality and relevance of free market economics." – David Willetts MP
[Editor's note: the draft coalition agreement between the Conservatives and the Liberal Democrats includes a commitment to increase Capital Gains Tax on "non-business assets".]
Tags: capital gains tax, Daniel J. Mitchell, investment, Lib-Con coalition
Many thanks for posting this informative video.
I don’t buy the double taxation argument in relation to capital gains tax. If you have $1 after tax and use it to purchase something you sell, you are not taxed on that $1, you are only taxed on the money made over and above it. The point I agree with though is that inflation should be considered and many systems have had a system of indeaxtion relief to offset this. The fundemental reason why it shoudl not be zero is that it is not equitable (from a right or left political viewpoint) to say that those earning money from income should pay more in tax than those earning it via captial appreciation. For genuine enterprise Relief should also be granted on investment meeting certain criteria