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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (48780)12/2/2011 9:21:37 PM
From: TimF  Read Replies (1) of 71588
 
I specifically wasn't talking about matching realized Cap. Losses against ordinary ('earned') income.

But about matching against realized Cap. Gains to 'wash' them clean of tax liability.

If you gain $1bil, and lose $500mil you've only gained $500 mil. The taxes apply against what you actually gained. To calculate the effective percent on your gains you divide the taxes paid by $500mil not $1bil.

If Buffet made such gains and losses and paid 15% statutory rate on them, he would pay an effective rate of 15% on this part of his income. $75mil would be paying a 15% rate. If he paid $150mil it would be a 30% rate.
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