Originally Posted by The 13th 4postle
If it qualifies as income, he has to pay taxes. The capital gains tax rate being at 0% doesn't change that. Wouldn't you hate to pay taxes after you won a bet on the horses and then again when you have to report the winnings as income? That's what the capital gains tax does. Taxes investors and traders twice. Once, right after they profit, and again once they add up all their gains as income.
Any gain on an investment that one holds for > one year is classified by the tax code as a capital gain, whether you buy a share of stock or a race horse. Under the Huntsman plan, Zero tax would be paid by Mr Buffett on any gain he accrued on those 700,000,000 warrants he can exercise at any time over the next 10 years.
But of course, Mr Huntsman and his daddy are big billionaires, so why am i not surprised the thinks this tax dodge is just ducky.
he's taking my mortgage deduction and giving it to daddy and Buffet. Seems fair to me....
Senator Bradley and Milton Freidman have the best idea: eliminate all loopholes and lower all rates and treat all income the same, with the caveat that the lowest earners get some exemption.