http://kdvr.com/2012/08/16/romney-on-ta … 3-percent/
So, this law professor, who apparently specializes in tax law, said this about Romney's tax rate:
... really, there are almost no words... except for WHAT IS WRONG WITH YOU!?!
According to this guy, Romney is using capital gains losses to keep his actual taxes paid low. Gosh, that's a brilliant strategy!
You have 3 investments, all long term, will be taxed at 15%.
Facebook: $50 million loss
Apple: $75 million gain
Google: $25 million gain
With investments, you pay taxes on a trade the year you close the trade out. So let's say you think it's a good time to get out of Apple and Google. You realized $100 million in gains this year. You would pay $15 million in taxes, and keep $85 million for yourself.
But, brilliant strategist that you are, you decide to also sell your Facebook stock. Ouch, you have lost $50 million in that trade, so in all actuality you only made $50 million this year. You would pay $7.5 million in taxes, and keep $42.5 million for yourself.
Look at you! You decreased your tax burden! That option was much better than waiting for Facebook stock to regain value, right?
Seriously... how anyone could suggest that capital gains losses are a tax avoidance strategy... it's just beyond me.
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