Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (50886)	8/21/2002 1:48:31 PM
From: marc chatman	Read Replies (2) \| Respond to of 209892

<<Now there is talk of giving a tax break to folks with losing positions, something along the lines of those with capital losses can be written off at up to $20,000 a year vs the current $3,000>> Wouldn't this be short-term bearish, as it could lead to some selling between now and year end to lock in those paper losses? If I were running for office this fall, I'd think twice about enacting this before the election.

To: AllansAlias who wrote (50886)	8/21/2002 1:51:25 PM
From: Haim R. Branisteanu	Respond to of 209892

This will make the budget deficit bigger and the market more frotty and the average Joe will lose even more money. they will do every thing only to win election. BTW $3000 capital loss was way to small IMHO adjusted to inflation it should be around $10,000 I think

To: AllansAlias who wrote (50886)	8/21/2002 3:22:49 PM
From: Siddhartha Gautama	Read Replies (2) \| Respond to of 209892

Increasing the capital loss limit is a fairer thing to do. Short term, it would be market bearish. But long term, it would improve trading volume. I read some where that during the great depression, the middle classes basically disappeared. So, if this bill helps preserve the middle classes, then, to that extent, would it not help avert a depression? It shoud help the Republican prospects by appealing to their weakest heel, the middle classes.

To: AllansAlias who wrote (50886)	8/22/2002 5:12:03 AM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 209892

Wanna get paranoid? Check out this post I made to UB only ONE week ago: Message 17884129 <<For example, leave the market alone but give everyone a 50% tax credit for any loss in value of their stock.>> Wanna know the ultimate "quick fix" for post-bubble economic malaise? Simply allow all capital losses on stock to be taken against current income (not limited to $3000, like it is presently). Make it retroactive to tax year 2000...VOILA! Instant cure!<G> (Hope no Kongressional Klowns are reading this...it would be toooooo funny if someone actually proposes this!<NFG>) Now check out this article from yesterdays MarketWatch: www2.marketwatch.com Pressure builds for investor tax cuts By Deborah Adamson, CBS.MarketWatch.com Last Update: 12:03 AM ET Aug. 22, 2002 LOS ANGELES (CBS.MW) - Support is growing for investor tax relief amid the lumbering bear market, but the federal government's rising red ink is snuffing out those hopes, experts say. President Bush heard from advocates of investor tax cuts during his economic summit last week. They back raising the ceiling for tax-deductible capital losses to $20,000 a year and cutting dividend and capital gains taxes. But with U.S. budget deficits rising - July's alone hit $29.2 billion -- passage of another tax relief plan could be difficult politically. "It's not likely to happen," said Martin Nissenbaum, national director of personal income-tax planning at Ernst & Young. "These tax proposals won't go anywhere unless they're part of a bigger bill." Grover Norquist, president of Americans for Tax Reform, is more optimistic about the prospects. He noted that 60 percent of voters are stockholders - important in an election year. Overall, about half of all U.S. households own stock, according to the Investment Company Institute. "Politicians who say don't help those rich people has half the country saying 'What?'" Norquist said. "They're out of date." Here's a list of proposals being considered that would keep more of investors gains in their pockets. Raising cap loss ceiling Americans have lost a pretty penny in the stock market. In 2000, the average reported short-tem loss was $34,310 - up 131 percent from 1996 - and the number of taxpayers reporting such losses rose 129 percent, said Rep. Ernest Istook, (R-OK), citing IRS data. Last month, Istook introduced a bill to increase the capital loss allowed in tax deductions to $20,000 a year from $3,000 -- plus index the amount for inflation. He noted that the $3,000 ceiling has not been increased in more than 25 years. An investor generates a capital loss when he or she sells an asset at less than the purchase price. For example, you bought 200 shares of XYZ Co. at $25 a share. Your cost is $5,000. The stock market dives and you sell the stock at $6 a share, or $1,200. You lost $3,800. According to current tax law, you can only deduct $3,000 of your $3,800 loss in the first year (assuming you don't have a gain to offset the loss). You have to wait until next year to deduct the $800. How are you taxed when you've made a gain on your stock? Let's say that instead of selling at $6, you sold at $45. Your capital gain is $4,000. You're taxed the full $4,000 in the year you sold the stock. "It's more of an equitable issue," Nissenbaum said. "They tax people on gains and don't allow them to take losses at a reasonable level." However, Charles Gabriel, senior Washington analyst for Prudential Securities, said $20,000 is too high and won't pass political muster. It might help investors during the bear market, but if left on the books, the $20,000 limit would help mainly "fat cats" who don't need it. Instead, he supports doubling the cap loss target to $6,000. GOOD GAWD! ARE SOME KONGRESSIONAL (and Presidential) KLOWNS TURNING TO THE CFZ FOR POLICY ADVICE! Holy $hit, if that's the case, I'm going clown long gold bullion futures and moving to New Zealand for good!<G>