| Capital Gains tax is a federal tax penalty that is | | | | greatest level in history, namely 35%. There is an |
| imposed on capital accumulation, investment and | | | | inequality with capital gains tax in the fact that people |
| productivity. Some of the income that is subject to | | | | must pay taxes on all of their gains but are only able |
| capital gains tax includes the sale of an investment, a | | | | to deduct a portion of their losses. This particularly |
| home, a family business, a farm or ranch or even a | | | | applies to investments that fluctuate between gains |
| work of art. The capital gains tax is applied on the | | | | and losses over time.In many states taxpayers are |
| difference between the price paid for an item and the | | | | liable, not only for the federal capital gains tax but also |
| money received from selling it, or the capital gain. The | | | | the state's own form of capital gains tax. This can |
| most common form of capital gain for people is the | | | | actually take the combined rate to almost 40%. |
| sale of their corporate stock. The capital gains tax rate | | | | California, Montana and Rhode Island are amongst the |
| for individuals is currently at one of its highest rates | | | | highest in the country. |
| ever and is at 28% while the corporate rate is at its | | | | |