Droppin' Knowledge: Rich Masino on Investor Tax Injustices

In the course of a fairly typical “takeover candidates” article at TheStreet.com, Rich Masino went off on a bit of a tangent that was actually more interesting than the meat and potatos of the piece.

Masino talks about the hotly-debated proposed Financial Transaction Tax and some other onerous taxation issues for the investor class…

From RealMoney (TSC):

While we’re on the subject, I’d like to weigh in on this subject of a financial transaction tax. Simply put, it’s indefensible, and it exhibits a terribly flawed logic that would be akin to taxing a merchant on top-line sales in addition to bottom-line profit.

 I would add that investors already suffer from a number of tax injustices, among them:


  1. Dividends are taxed twice (once at the corporate level and again at the individual level).
  2. Capital losses beyond $3,000 can only be offset against capital gains.
  3. Investment expenses are not deductible for those investors who fall into the alternative minimum tax.
  4. There’s no such thing as a lower long-term gain on a short sale.
  5. Capital gains are not indexed to inflation.


Lastly, it hasn’t exactly been a picnic for the average investor, as the market is in virtually the same place it was a decade ago, and there have been many traumatic events along the way. Meanwhile, thanks to inflation, the purchasing power of a static portfolio has declined by nearly one-fourth over the last 10 years.

Many of these points will be lost on Congress.  To read the rest of Rich Masino’s article, follow the link below.


Four Takeovers We Could See This Year (RealMoney Silver – sub req)

Read Also:

More on the Proposed Trader Tax (TRB)

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