(1) Congress's insider trading exemption - Until recently legislators and their staff were completely exempt from insider trading laws while they were often privy to insider information[1]. It's no wonder they do so well in the market. Too bad some minor restrictions recently were enacted - but no worries they just got rid of them as soon as the noise died down[2].
(2) Tax-free portfolio rebalancing - Big shots like the Secretary of Treasury often sell billions in stock without paying any capital gains tax. This allows them to fully take advantage of the free step up in basis when they die. So they can never pay anything on the fortune they made at Goldman Sachs[3].
As to the tax-free sale, unless I misunderstand, this is extremely limited and far from "often". Few people will ever have the opportunity, it occurs once in a lifetime, and it is offered as compensation for the forced liquidation of one's entire stock portfolio to become a public servant.
Yes you get to sell all your stock in one company and buy a diversified portfolio. Maybe you haven't heard but diversification is good. And NOT FREE for everyone else. Do you understand the value of this?
In my view everyone should be able to do this under the ancient English law principle of like-kind exchange. But in the US today it is "special people" only.
To recap: Why are you taxed for something? Because they can tax you. There are no principals just opportunity. Much like why did your car get broken in to. Because they can.
(1) Congress's insider trading exemption - Until recently legislators and their staff were completely exempt from insider trading laws while they were often privy to insider information[1]. It's no wonder they do so well in the market. Too bad some minor restrictions recently were enacted - but no worries they just got rid of them as soon as the noise died down[2].
(2) Tax-free portfolio rebalancing - Big shots like the Secretary of Treasury often sell billions in stock without paying any capital gains tax. This allows them to fully take advantage of the free step up in basis when they die. So they can never pay anything on the fortune they made at Goldman Sachs[3].
Fuck these assholes!
[1] http://www.thewire.com/politics/2011/11/hustle-defuse-60-min...
[2] http://www.techdirt.com/articles/20130416/08344222725/congre...
[3] http://www.celebritynetworth.com/articles/entertainment-arti...