Stocks Are Rarely Taxed

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There is an immense amount of value in the U.S. stock markets. U.S. stocks are worth more than $17 trillion dollars, even more incredibly the World Bank estimates that $35 trillion is traded on U.S. stock markets every year. But despite all of the money trading hands, the U.S. government receives only $350 billion annually from capital gains taxes, meaning that on average the U.S. government only has a 1% tax rate on stock trades.