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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.

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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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