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re: How do you respond to this Yahoo comment regarding short/long-term capital gains tax rate?
Posted on 12/19/17 at 10:47 am to rickgrimes
Posted on 12/19/17 at 10:47 am to rickgrimes
quote:First, profits (gains) from investments held less than one year are NOT taxed favorably. They are taxed at the same rate as the taxpayers ordinary income is taxed.
How would you respond to this?
Second, investments held longer than one year are taxed at a favorable rate (@ 15% in most cases) to compensate the investor for the risk he had to take in making the investment.
This also encourages people to become investors and not just short term speculators thus providing a more stable stream on funding for longer term assets held by investors. That helps our economy.
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