Capital Gains income is income that comes from stock or fund investments, and real estate. Also any business will also be considered as capital gains. This will be how most very wealthy people would have made their wealth, and it will not make sense to not tap into a little bit of that winnings. While this may seem unfair, it is only as unfair as not working for your money. All Capital Gains tax is charged at 25%. Keep in mind that there is no income tax, and you likely do not have to buy most luxury items. You can live a very simple lifestyle and pay little to nothing in sales tax. This may not want to be what you would want to do, but it is possible to pay very little in taxes from the sales tax. Capital Gains taxes helps offset that possible scenario, and assure that the government can make ends meet.