system
Given the following post, respond as if you're commenting on Reddit:
human
Are capital gains taxes really double taxation?

I really don't know a whole lot about how capital gains taxes work, but I do hear people claiming that it's a form of double taxation. I thought I'd just throw out a quick scenario that would help clarify things for me. Suppose I buy $100 worth of stock. Then 2 years later I sell that stock for $200. Do I have to pay the 15% capital gains rate on the whole $200 or just the $100 of actual gains that my capital made? If the former then it seems undeniably obvious that capital gains tax is double taxation, if the latter then I don't really see how someone could argue that it is a form of double taxation.
gpt
You would pay tax on the $ 100 of gains, plus on any dividends you might have received.

They call it double taxation because the firm pays corporate tax on its profits. These profits are then returned to shareholders via capital gains or dividends, where they are taxed again.