In order to make taxation efficient and equitable, the authors argue that a capital gains tax must be put in place. They point out that the historical distinction between 'income' and 'capital' gains, concepts borrowed from other areas of the law, bears no relationship with a taxpayer's economic gains or ability to pay. Moreover, the indistinct and easily manipulable border between the two gives rise to many looopholes and avoidance opportunities.

The authors stress that the basic principles governing any tax system must be clear. For example, if redistribution is an issue, then it must be recognised and tax practices  put in place which facilitate its implementation. They put forward the case for an accruals based capital gains tax and deal with the arguments for and against such a tax.