Re: G & J, in cahoots?

From: Jeff Bone (
Date: Wed Mar 21 2001 - 14:28:02 PST

Dave Long wrote:

> Let's leave aside any discussion of how large
> the overall tax burden may be. We might be
> talking about only a 1% overall tax, yet still
> question whether it should be applied in a
> regressive, flat, or progressive manner*.


Overall tax burden only 1%?

What the hell are you talking about, man?

> * In a progressive tax scheme, the upper end of
> the distribution is taxed at a greater rate
> than the lower. A regressive scheme is the
> opposite, and a flat tax doesn't differentiate
> between taxpayers.

Yes, except that the progressivists commonly use the term "regressive" to refer to
anything other than sticking it to the upper income earners.

> It's no higher than regular income tax, and
> usually very much less. Any money on which
> one has already paid tax is counted in one's
> tax basis, and so one is only taxed on any
> gains beyond that.

Let's try again. This one I know about first-hand, because I'm FUCKING LOOKING AT
IT TODAY! BTW, you picked a bad day to try to convince me you know wtf you're
talking about in this regard, because I've been SITTING HERE ALL DAY TRYING TO

Here's the scenario: sold company; owed taxes; sold new stock; this is a
taxable event; owe still more taxes. In theory, sure, money already paid is in
the basis. In fact, it doesn't turn out quite like that; all kinds of weird rules
related to AMT, qual vs. non-qual, which forms everything was claimed on, etc. etc.

This is no joke, Dave. I'm staring at a whopping liability this year for this very
reason; I had calculated my tax liability for this year *last year* using what I
thought I understood about taxes and basis. I overestimated my basis dramatically,
due to various rules.

> (this seriously overestimates amount of tax
> to be paid, but it's handy for quarterlies.
> These are probably 99 or 00 figures, not 01)

In my 66% tax number, that's an anecdotal amount that applies to *all* taxes of all
kinds, regardless of taxing authority, across the board, at every level. I just
don't buy your numbers, Dave.



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