I guess it is a matter of how you say it. "There is no capital gains tax" This is true. No ADDITIONAL percentage of your capital gains is added to you taxes below certain limits. But, "There is no tax on capital gains." is false. I Have experimented with a practice 1040 with all Taxable income below the threshold and if I put in any amount in the capital gains section it flows right trough to the taxable income amount and is taxed as ordinary income. I have played with this for two days now and the results are always the same. Any amount that is on line 13 flows to line 22, line 37, line 38 and is reduced by deductions to line 43 Taxable income and always includes the amount from line 13. It looks like I have been operating under the "No capital gains tax" falsehood. PLEASE PROVE ME WRONG!
