The capital gains tax has been showing up in the headlines recently as it is now being put on the table for a potential increase. As of now, it is being marketed as a tax that will only be affecting a certain (supposedly small) population of the United States; however, is that actually the case? Nope! Not at all. A capital gains tax will affect everyone no matter where you are. A capital gains tax will affect you whether or not you invest into the stock market or have any other kinds of investments. While the government’s public relation’s department put their typical “spin” on things, let’s take a closer look at how the real world plays out and how a little bit of critical thinking can go a long way. I should not, this has nothing to do with being right or wrong or politics, but it just illustrates why we as traders (and just people in general!) need to always be doing some critical thinking and not taking what we’re told at face value. Let’s talk capital gains tax and the consequences of it.

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