Let's take Alex. Alex lives in Los Angeles and has ordinary income of $175,000. Alex has also realized another $10,000 in short term capital gains. He also has a few stock positions with unrealized losses.
The chart shows Alex's tax burden associated with his capital gains. If he does not realize any losses, he would need to pay $4,130 in taxes on his gains this year.
Alex could reduce this burden to $0 by realizing a $10,000 short term capital loss (and reallocating the funds into similar assets).
Or, perhaps he could go even further, and realize $13,000 in losses. He would then not only offset his realized capital gains, but also offset an additional $3,000 in ordinary income (the maximum offset allowed). This would reduce Alex's current year's tax burden by $5,369.