What type of taxes are levied on the profit from the sale of assets like stocks or properties?

Capital gains taxes are specifically levied on the profit realized from the sale of assets such as stocks or properties. When an individual sells an asset for more than its purchase price, the profit made from that sale is considered a capital gain. These taxes are crucial for the government’s revenue and are distinct from other types of taxes like corporate taxes, which are imposed on a company’s profits, or income taxes, which apply to an individual’s overall income from various sources.

Wealth taxes, on the other hand, are typically based on the total value of an individual’s assets rather than the profit generated from selling those assets. Therefore, capital gains taxes apply uniquely to the profit from asset sales, making them the correct choice in this context.