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by beamatronic 2183 days ago
The money that was used to purchase the stock originally was probably post-tax dollars
5 comments

They money I used to buy a candy bar is post-tax dollars dollars, but I still pay sales tax on it. They money I use to pay for a taxi ride are post-tax dollars, but the taxi driver still pays income tax on it. When I sell that stock I bought with post-tax dollars, I still pay capital gain taxes on the profits.

Post-tax dollars aren't magical things that mean you never pay taxes again. They're just an accounting tool that makes dealing with some tax-exempt activities easier.

Are you suggesting that capital gains taxes on stock sales are also wrong because the stock was purchased with post-tax dollars?
And you aren't taxed that amount when you sell it, you're only taxed the profits.
You pay taxes on the gains. (Unless you purchases them through a Roth 401K/IRA where you don't, but those have tight limits on it.)
Unless it’s stock in e.g. a 401k or IRA.