5.3.  Taxation

In this section, we will focus on how investments are taxed. To understand these concepts, you need to have a basic understanding of how the income tax system works in the United States. Specifically, you need to understand that Americans are taxed under a progressive tax system, meaning that non-investment income is divided into tax brackets that are taxed at increasingly higher rates as an individual earns more money.

The departments of the U.S. government