Abroad: A Gentle Milking

The U.S. has been taxing all capital gams regularly since 1913, but most other nations did not begin doing so until comparatively recent times. A summary of the situation in major industrial countries:

BRITAIN. Though unearned income is taxed at Shylockian rates of up to 98%, capital gains were not taxed at all in Britain until 1962. Now almost all profits from the sale of personal goods, property or stock are subject to a levy of 30%. Among the few exemptions from taxation are profits from the sale of a principal residence, automobiles and personal possessions sold for less than $2,000.

CANADA. Until 1972 there was no such tax. Now generally half of any capital gain is taxed. The rate is the same (up to 45%) as for other income.

FRANCE. Since 1977 some capital gains have been taxed, but France has a wide variety of exemptions -- loopholes to critics -- including capital gains from any source that do not exceed $4,600 a year and from the sale of a principal residence and of farm land.

JAPAN. There is no capital gains tax for individuals on profits from securities if the taxpayer's income comes mostly from other sources. Real estate profits are taxed at a rate ranging from 31% to 56%.

SWEDEN. Capital gains are generally taxed at the same rate as regular income (up to 85%). One exception is the sale of stock held longer than two years, in which case only 40% of the gain can be taxed.

WEST GERMANY. Capital gains from securities held more than six months and real estate held more than two years are not taxed at all. Short-term gains are taxed as regular income, at rates up to 56%.

And how about the Soviet Union? Accumulation of capital is forbidden by law, so there is no capital gains tax at all.

This file is automatically generated by a robot program, so viewer discretion is required.