Where is the capital gains tax defined in the law?
<p>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.</p>

<p>It looks to me like it's in <a href="https://www.law.cornell.edu/uscode/text/26/1" rel="nofollow noreferrer">26 USC 1</a> (h), which explains how tax is to be computed on capital gains.</p>

united-states tax-law