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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 660.19-0.8%Nov 18 4:00 PM EST

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To: ted birnbaum who wrote (47761)4/23/2000 10:02:00 AM
From: Zeev Hed  Read Replies (1) of 99985
 
Trading and incentive options profits may have a positive effect on the tax revenues, but losses have only a minimal negative effect, since there is a limit ($3000?) of how much of these losses can be taken against regular income every year. Even if you lost $1 MM, you still cannot deduct against regular income more than that minimal amount. You have to "carry" the losses to be compensated against other short (long) term capital losses in future years, or deduct $3000 for the next 300 years (if you no longer have capital gains).

I think that the impact on final demand from the "withdrawal" of such profits from the market, will have a greater impact that the tax route.

Zeev
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