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what is the main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired?

The main difference in that way that earned income and capital gains are acquired is that earned income originates from taxable income activities where as capital gain income does not originate from regular business activities

Step-by-step explanation:

Portfolio income is acquired from investments, dividends, interest and capital gains.This type of income does not originate from regular business activities.Earned income originates from all incomes that are taxable and includes wages from various working activities to disability payments.

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