Originally Posted by Stewie
It's simple. You make $1 million in capital gains the gov't gets 15% ($150,000). You lose $1 million you get to right off $3500. The gov't is happy to rape you on your gain, but you're on your own in a loss.
You can carry off the loss to the next tax year. Also, your point is completely uncompelling. Compare the same situation with regular income or short term cap loss. If you make $1 million income in 2013, you pay 39%. If you lose your job and work at McDonalds, you don't have to pay such a high rate. You're "on your own." What does that mean? It means you don't have to pay more taxes!
Yeah, you have a really nonsensical, stupid way of looking at this issue, in part because it's so fantastical.
Is it okay to think about realistic situations when thinking about the tax code?