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I don't understand the premise. Losses are tax-deductable on both stocks
and derivatives for normal tax-payers. Therefore everything gets
bilateral treatment.
What am I missing?
Regards
Dan Goncharoff
Tin Mervin Yeung wrote:
>
> Hi, RT,
>
> In equity markets, if the market rises, the holders of equities are
> making money and so it is fair for them to pay the income tax. (because
> value is being created. ) In derivative markets, however, since it is a
> zero-sum game(no new value is being created), the only thing happens
> here is the exchange of money (money flows from losers to winners). Is
> it fair for the government to tax the winners without compensation to
> the losers?
>
> Can this argument be justified to persuade people to buy stocks instead
> of trading futures and options?
>
> Mervin
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