Which statement is TRUE about taxation of capital gains?
A. Short term capital gains are taxed at higher rates than long term capital gains
B. Short term capital gains are taxed at lower rates than long term capital gains
C. Short term capital gains are taxed at the same rate as long term capital gains
D. Short term capital gains are taxed at ordinary income rates; long term capital gains are tax deferred
Answer: A. short term capital gains are taxed at higher rates than long term capital gains