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To: ted birnbaum who wrote (47761)	4/23/2000 9:16:00 AM
From: Les H	Read Replies (1) \| Respond to of 99985

According to the following article, the author surmises that many of the highly leveraged traders actually increased their margin during the March downdraft in some of the highflyer stocks (internet, biotech, etc.)... gold-eagle.com The Trimtabs trimtabs.com had an article that much of the increased tax revenue comes from stock profits, probably most of it from insiders selling their shares. There was a big jump in December of 10% or so when they selling.

To: ted birnbaum who wrote (47761)	4/23/2000 10:02:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to 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