We tax capital gains as if they were ordinary income.

The tax losses could be used to offset ordinary income.

In addition, $3,000 of the losses can be taken against ordinary income.

And next year, that person could offset another $3,000 of ordinary income.

So that $24,000 loss would offset only $12,000 of ordinary income.

Tax rates on ordinary income go up to 39.6 percent.

Under current law, such sales are taxed as ordinary income.

They are taxed like ordinary income, at rates up to 33 percent.

The law trimmed rates on ordinary income, and that is easy enough to understand.

In contrast, rates for ordinary income go up to 35 percent.