Earth to Senate: Reduce taxes instantly: Raise the capital loss deduction!
Maybe it’s in the Big Bill somewhere and I missed it, overcome as I was with the redolence of frying bacon and all the slaughtered sacred cows–the carefully targeted programs that make our lawgivers look like they’re really serious about trying really hard to spend our money really well.
But Americans lost billions in the stock market last year, and they get to write off only $3,000 a year of their net capital losses, until their net loss deduction is exhausted. At the current rate, it could take some people more than a lifetime to exhaust their deductible losses.
Think of the trees we could save by not printing Schedule D forms for people who have only their annual $3,000 capital loss deductions to declare unto the year 3060. Think of the buildings we could not build to store all the Schedule D forms in.
The simple, obvious way to cut taxes for the middle class–the people who sincerely tried to upgrade their possibility of future financial independence– is to increase the capital-loss deduction, to, say, $20,000 that could be taken off in a single year. This measure would result in personal stimulus and increased spending capital.
It’s frustrating how expansively our heady lawmakers will view a morass and miss a mote of sense.
Hello? Hello? HELLO?