system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How do these tax loopholes work for the rich?

Specifically, carried interest and capital gains. I've tried comprehending these articles online but they just don't make too much sense. I remember hearing about these loopholes from the Paul Ryan vs Joe Biden VP debate.
gpt
For capital gains.. You have some assets, and you sell them for a profit. You get hit with a capital gains tax. Seems reasonable, right? Well, they're taxed lower than your income from working a 9 to 5. That's why people call it a loophole. If you are wealthy enough, you can generate a lot of income off trading assets and pay a smaller tax than you would if you made that same amount of money at a job somewhere.