The U.S. has two parallel tax systems for income: ordinary income (wages, interest, short-term gains) taxed at 10-37%, and long-term capital gains (profits on assets held over one year) taxed at 0-20%...
The U.S. has two parallel tax systems for income: ordinary income (wages, interest, short-term gains) taxed at 10-37%, and long-term capital gains (profits on assets held over one year) taxed at 0-20%. Understanding this split is essential because it determines how every dollar you earn from investments is taxed.
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