LAT's Kristof suggests Rich will find ways to avoid higher tax - BUT SHE'S

[papau]

WRONG!

http://www.latimes.com/business/la-fi-kerrytax2oct02.story

Senator's Tax Plan May Not Raise All He Expects
Critics of Kerry's proposal say the wealthy can find many ways to hold on to their riches.
By Kathy M. Kristof
Times Staff Writer

October 2, 2004

For Sen. John F. Kerry's household, the price of winning the presidency could be nearly $250,000 a year in higher taxes.

Or not.

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She has 4 thoughts:

1. On Capital Gains - "You don't pay tax until you sell."

But an annual write up of basis ("purchase price") by taking 25% of the total unrealized and moving it to basis, would do wonders for the treasury - and indeed such a new definition of taxable gain may lead to the elimination of the need for the "DEATH TAX" - as that tax really only tries to recover some of the capital gains tax that was never paid, before those that inherit get the assets with a write-up in basis to "current value".

2. more tax-free municipal bonds - a great point - as such hidden costs to the gov should be eliminated in my opinion. But while the current game goes on, this amounts to a gift to cities and towns - which is not a "bad" thing!

3. Buy stocks that don't pay dividends. - If the the capital gains includes an annual basis write-up, this loophole is closed. If not, we get it back - albeit deferred - with the "Death Tax"

4. Take more deferred compensation - A GREAT IDEA - make this more valuable, and defined benefit pension plans - real pension plans - come back as the rich are forced to trade part of their personal tax savings for the company giving reasonable pensions for employees. WHERE THE HELL IS THE DOWNSIDE?

[BlueMole]

1. Tax Free Municipal Bonds

Yeah!!

:beer: