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How the Inflation Reduction Act Failed to Close a Billion Dollar Tax Loophole

How the Inflation Reduction Act Failed to Close a Billion Dollar Tax Loophole

On Aug. 16, President Biden signed into law the Inflation Reduction Act following a highly contested run through the Senate. While most of this income is treated as ordinary income, and taxed at one set of rates, investment income is treated preferentially and is taxed at a lower set of rates. When most Americans think about taxes, they think about ordinary income tax.