Quote:
Originally Posted by Cynthetiq
Investment instruments like stocks and bonds? pay taxes only on what profits you made.
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While this is true, it would be more accurate to say...
"Pay taxes on what profits you make, but not the difference of your total worth."
If you start with $10,000 in stock, then it doubles in value - you've made $10,000. If it then drops to a net worth of $5,000 - you STILL pay tax on the $10,000 you made previously in the year.
Which is bullshit.