[FoRK] Private equity, venture capital, entrepreneurs, and tax policy

[Russell Turpin]

Geege:
> Long term is MORE risky? We reward RISK?

I suspect the distinction between short term and long term, to some
extent, is meant to be a proxy for the difference between entrepreneurial
risk (VCs and angel investors) and speculation (traders). Of course, any
arbitrary time boundary will be only a haphazard proxy for that. I even
can imagine the use of derivatives to lock in short-term gains while 
turning them into a combination of long-term gain and small short-term
loss. 

A second issue, of course, is inflation. It's quite painful to pay 
taxes on purely nominal gains. It just adds injury to injury. ;-)
   
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