A taxpayer in the 35 percent marginal tax bracket would pay less tax by holding an investment with capital gains over one year.

Question

Quizplus · Accepted Answer

Taxpayers in the 35 percent marginal tax bracket pay a higher tax rate on short-term capital gains (gains on investments held for one year or less) compared to long-term capital gains (gains on investments held for more than one year). Therefore, holding an investment with long-term capital gains would result in paying less tax.

A Taxpayer in the 35 Percent Marginal Tax Bracket Would