What role did colonies play in mercantilism

Mercantilism is intended to function as an economy by which a nation, such as England or Great Britain obtains colonies throughout the world. ... Britain, in a mercantilistic economy, took raw materials and made them into finished products and then sold them back to the colonists.

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.