Lousy Legislation

The problem with the recently created “Opportunity Zones” or the possibility of indexing capital gains against inflation is that it creates different tax rates for marginally different types of investment. Like nations that have complex exchange rate regimes, these tax treatment differences create huge opportunities (loopholes) for abuse and can only be countered by very careful legislative drafting and strong enforcement. Tax complexity is a playground for smart people.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.