Re: Is Anonymous E-Cash Dead?

From: James Wetterau (jwjr@ignition.name.net)
Date: Tue Jul 18 2000 - 14:19:09 MDT


Brian Atkins says:
...
> > > ... transfer your profits
> > > occasionally back to the bank account, and from there to your US
> > > bank account. You could tell the IRS you don't know who these magic
> > > payments come from, perhaps a secret admirer :-) And voila, no more
> > > capital gains taxes. ...
> >
> > Then, even worse, it's income! Even if it's an anoymous gift (yeah,
> > right, the IRS believes that) you still owe income taxes on it.
> > Income taxes are worse than capital gains taxes for non-trivial
> > incomes. At least with regular capital gains they're exempt from any
> > income taxes, municipal, state or federal.
> >
>
> Actually short term capital gains are taxed at the same rate as
> income.
...

Yes, I know that short term capital gains are different from regular
capital gains. But even in that case, of course tax must be paid, and
it's at least the same or even worse than capital gains taxes. The
original post implied that you can avoid capital gains taxes and my
point is that you can avoid them only by paying the (possibly) worse
income tax.



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