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To: energyplay who wrote (62602)	4/23/2005 8:58:57 PM
From: Moominoid	Read Replies (2) \| Respond to of 74559

Capital gains not personal income - 1) Canada seems to count it. I don't know about Canada but the issue is if we count undistributed business profits in the GDP and then counted capital gains we would be double counting. And there is no one-to-one relation between the capital gains and the undistributed profits... I'm not sure how share buybacks are accounted for in the national accounts. Capital gains on housing is just inflation (unless it is due to remodeling etc.), certainly not income :) 2) There is an enormous tax incentive to arrange to get capital gains instead of taxable income. Of course the US taxes capital gains :) The above is just for measuring GDP, saving etc. But I think capital gains shoudln't be taxed and there should be corporate tax credits attached to the dividends as in Australia and NZ.