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How does capital gains tax contributes to vertical equity?

Posted 20 May 2016

RCS said:
19 May 2016 at 15:42

Explain how capital gains tax contributes to vertical equity.

TaxTim Alicia TaxTim Alicia said:
20 May 2016 at 10:29

40% of the capital gain is added to your taxable income and will be taxed at your marginal rate of tax. Therefore, the higher the tax bracket you are in, the higher will be the tax on your gain.

Does this clarify your question?

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