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capital gains tax
(redirected from Capital Taxes)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.03 sec.

capital gains tax

Tax levied on gains realized from the sale or exchange of capital assets. Though capital gains have been taxed in the U.S. since the advent of the federal income tax, certain capital gains are taxed less heavily than regular income, while others are exempted from taxation. This preferential treatment is intended to encourage investment and thereby stimulate economic growth. In theory the tax break encourages investors to risk their capital in new ventures. Critics argue that preferential treatment results in distorted patterns of investment because regular income is converted into capital gains in order to avoid paying income tax. See also corporate income tax.



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To create prosperity on Anglesey he wants a selective reduction in capital taxes, availability of UK-wide business rate reductions and investment in Holyhead port.
It will therefore come as a relief that no such increase was announced, and in fact the improvements from April 6, 2010, to Entrepreneurs Relief (a lifetime allowance of capital gains on which entrepreneurs pay capital gains tax at 10%) will represent a reduction in the overall burden of capital taxes by up to pounds 80,000 for many business owners, which should help to encourage the level of business investment.
Once tax policies are fully implemented, Ontario will have a marginal effective tax rate for non-resource industries that is comparable to, although slightly higher than, Alberta's, which has no sales or capital taxes and a corporate rate of 10 percent.
 
 
 
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