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Earth to Senate: Reduce taxes instantly: Raise the capital loss deduction!

February 9, 2009

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?

 

 

 

 

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12 Comments
  1. tommy permalink
    February 9, 2009 11:41 am

    The capital loss deduction limit has been $3,000 since 1987, it’s time to increase it! To all investors who lost a lot of money in the stock market, write to your representative in congress to get this passed! This should also be retroactive to 2008. People lost a buttload of money in the market in 2008!

    Tell everyone you know in the investment community to do this!

    Bill: http://www.govtrack.us/congress/bill.xpd?bill=h111-884
    Write to your representative: https://writerep.house.gov/writerep/welcome.shtml

  2. February 9, 2009 12:05 pm

    And I should add that the skimpy $3,000 deduction applies to married taxpayers filing jointly. Single or filing separately taxpayers only get to deduct $1,500.

  3. Amit permalink
    February 13, 2009 9:43 pm

    Correction to Lauren’s statement:
    Single taxpayers can still deduct $3000… at least I hope so!

    You are correct! Single taxpayers in this instance are distinguishable from Married Filing Separately. Single taxpayers may deduct $3,000; MFS may deduct $1,500 apiece. Thanks! Mea culpa.

  4. Amen Lauren! permalink
    February 27, 2009 6:35 pm

    I completely agree.

    The odds are stacked against the regular citizens who are trying to make it on their own. Make a buck, pay your taxes. Lose a buck, be damned.

    Dave

  5. tommy permalink
    March 3, 2009 6:21 pm

    Obama suggests buying stocks, defends econ plan
    http://biz.yahoo.com/ap/090303/obama_economy.html

    I had faith in the Obama administration but are they that clueless? Hello, McFly! People lost so much in the stock market in 2008 and continue to lose more in 2009. Time to wake up!

  6. March 3, 2009 8:08 pm

    Let’s just say that right now, I call first before going to a business I haven’t laid eyes on in over a month, just to make sure it’s still there. Buying stock in a business in another part of the country, or the world, strikes me as a tad tenous. . . .

  7. tommy permalink
    March 23, 2009 2:33 pm

    Looks like the IRS is allowing investors in the Madoff or other ponzi cases to claim theft loss. What about the rest of the population that loss a lot of money too because of bad management or companies that didn’t get investigated by the SEC?

    I don’t understand why some people get a relief while others are left holding the bag?

  8. March 23, 2009 3:08 pm

    Maybe we are rewarded when our losses can be blamed on someone other than the Fed?–and when our losses are due to market crashes that are consequences of universally destructive Fed policy, then “we’re all in the same boat?”

  9. tommy permalink
    April 8, 2009 12:34 pm

    Knollenberg bill would increase federal capital loss deduction:
    =====
    http://michiganmessenger.com/16582/knollenberg-bill-would-increase-federal-capital-loss-deduction

    I would still prefer the $20K from http://www.govtrack.us/congress/bill.xpd?bill=h111-884 ! :)

  10. April 8, 2009 1:51 pm

    Great–under Knollenberg the taxpayer will only have to live half as long to deduct his loss! :D

  11. tommy permalink
    May 8, 2009 9:52 am

    Looks like another push in the right direction, this time from the Democrat side, maybe this will happen after all!

    http://www.deseretnews.com/article/705301754/Hatch-seeks-higher-deduction-for-investment-losses.html

  12. tommy permalink
    July 27, 2009 1:59 pm

    Please forward this petition to everyone you know. It’s time to make things happen!

    http://www.petitiononline.com/s978/petition.html

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