Short-term capital gains do not receive benefits of the special rates afforded long-term capital gains. Long-term capital losses, if used to offset long-term capital gains, reduce a gain that would be taxed at no more than 20%. The problem:

Therefore, taxpayers achieve a better overall tax benefit if they can arrange their transactions to offset short-term capital gains with long-term capital losses. Although this cannot always be achieved considering investment strategies, when implemented, it will offset income that would otherwise be taxed at ordinary rates.