Imagine that an exchange student from china visits your class. while your teacher discusses how the united states has a limited government, the chinese student raises his hand and asks why the government has limited power. which point best highlights why the us government has limited power

a big wall across the mexican border so no drugs, terrorist, or illegal immigrants can come through : )    

the answer is: must pay taxes on profits

since it is considered as a part of your income, profits from investments is eligible for tax payment.

the tax from your investment could be influenced by how long you decided to sell it. united states promotes keeping your investment for long term period. so, the tax rate for investments that you sell in less than one year is typically higher compared to investments that you sell in more than one year period.