The Capital Gains Tax Rate
Basically, capital gains tax is what you have to pay when selling an asset for more than your basis in it. This is what you pait for it plus some extra expenses that contributed to its improvement.
It doesn’t sound like a loophole considering that you actually have to pay for it. However, the capital gains tax rate is actually lower than the rate at which your ordinary income is taxed. In other words, if part of your income comes from investments, you will pay less in taxes than you would if your entire income came from employment only.
