this is exactly why im not in stocks, ur taxed if u win, ur taxed if u loose... im an anarchocapitalist and dont like for what the greedy IRS is doing. next thing u know, if your dog pees in a firehydrant, since the firehydrant could be federaly owned, its now a taxe everytime ur dog pees on the darn firehydrant...
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Taxation in Western countries is used to fund mass immigration and welfare programs breeding native populations out of existence. It's a form of socialist wealth re-distribution. Income tax should be completely abolished as it dis incentivizes hard work. Only consumption should be taxed. That would be a much fairer system.
As for the stock market it's a rigged game. Stay away from it and just trade crypto ;)