Which law defines the fact that the capital gains tax is taxed at a different rate than the income tax? I know 26 U.S. Code Subchapter P defines what capital assets are and what capital gains and capital losses are, but I'm not sure where it's defined that capital assets are taxed differently.


It looks to me like it's in 26 USC 1 (h), which explains how tax is to be computed on capital gains.

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