Cap-gains tax statute refers to corporations and taxpayers, not people.
The sentence reads, “In the case of a taxpayer other than a corporation…”. If they meant people, the statute could say “For all others”. The ‘taxpayer’ is someone affiliated with the federal alliance. The alliance can tax its own and things it enables, such as when it issues a corporate charter — which is a privilege.
Excise taxes are privilege taxes.
Cite: https://www.law.cornell.edu/uscode/text/26/1211
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