The United States and many other countries, including Canada, India, and the United Kingdom, typically do not tax gains from the sale of a home. Most U.S. states treat capital gains the same as ordinary income. People disagree over whether capital gains should be taxed at a lower rate than ordinary income. Opponents of lower rates stress that such rates benefit primarily higher-income people. They also say that adjustments for inflation can be made in the measurement of income from the sale of capital assets.
Some people fear that low capital gains tax rates result in lower government revenues.
But low rates may increase revenues by encouraging the sale of capital assets. For a free trial of World Book Online, click here . We'd like to hear from you. Click here to submit your comments.