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To: kollmhn who wrote (82919)	12/28/2000 2:31:26 PM
From: kollmhn	Read Replies (1) \| Respond to of 95453

correction- If you are in the 15% tax bracket in 2001, the LT rate drops to 8% (from 10%), not to 18% as I erroneously typed.

To: kollmhn who wrote (82919)	12/28/2000 2:38:13 PM
From: kodiak_bull	Read Replies (1) \| Respond to of 95453

OT OT Sidebar: Is the special rate for investments held for 5 YEARS or more a stupid idea or what? Can anyone explain to me the rhyme or reason for that, with a straight face? A company raises investment money in the capital markets, and for simplicity sake, let's just have one purchaser, A, investing $10,000 in Company X. Three years later, A wants to sell his investment to B for $25,000, but no, if he holds onto it for another two years he's going to get a better tax rate. What? Meanwhile, the capital markets, which means X's ability to raise funds, are not helped by this scheme (which would seem to reduce liquidity) nor is the individual investor who when selling must make a much more complicated decision concerning the risks/rewards of holding for a further period. And the buyer isn't helped because, duh, the market is less liquid. What is the purpose of this caca? I don't know, maybe it makes sense in a way I just can't fathom (the one year cap gains period makes no sense, either, for that matter). Is there something somehow holier about investments made for the "long term"? (remember how that silly concept first sedated then vivisected those intrepid investors from the Isles of Nippon in the go-go 1980s!). Otherwise, I'm just watching my stocks go up, Kb

To: kollmhn who wrote (82919)	12/28/2000 4:55:25 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

if you are in the 15% bracket (very few serious investors are) Well, Koll, in defense of 15% bracketeers, you have to remember everyone's situation is different. I'am not sure Wall Street considers me a serious investor but I do. I think there are plenty of people like me, lots of assets but little taxable income. My situation is retired with 75% of assets in an IRA. I pay far less taxes than when I was working while making far more money than I ever made working. All perfectly legal. With investment earnings, you can do some tax managing. With earned income, you are a sitting duck. I sometimes wonder why the hell anyone works (other than to keep the wolf from the door, of course)<g>. Another nice benefit of not working is no SS tax. All in all, I can't afford to go back to work. John