Read the excerpt. All political power is inherent in the people, and governments derive their just powers from the consent of the governed.

–Washington State Constitution,
Article I, Section 1

The excerpt defines

protection of rights.
limited government.
popular sovereignty.
checks and balances.

protection of rights...

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make me

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.