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Wednesday, April 13, 2011

Capital gains taxes?

Why are long-term capital gains & dividends taxed at 15% while short-term capital gains are taxed at up to 35% today. If I make money on a stock and sell it a year and a day later I pay 15% in federal long-term capital gains taxes. But if I sell it 2 days earlier I pay up to 35% in federal short-term capital gains taxes.

Why is slow moving capital preferred to quick moving capital?

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