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Schweser Mock, Question 3C

One question that confused me is Question 3C.

On one hand they say income tax for Perkins is 40%, his children pay investment taxes of 30%. The capital gains tax rate is 20%.

For Perkins' retirement account, the tax rate is 40% - which is fine, based on the vignette.

But why do his children pay 30%, when the capital gains tax rate is 20%?

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