Even imaginary money can be taxed
Like the rest of you, I listen to the news, I read the news, I avoid being the subject of the news. The rules are clear. But from time to time, my cynicism increases, nourished by the content. Take, as an example, a trial that’s winding down in the US, involving a huge case of investor fraud. I can’t comment on the veracity, but I can comment on the voracity of one of the parties involved.
In any case of financial fraud, there are the “winners” and the “losers”. Once in a while, roles are reversed, but all involved have a common flaw: greed. Something for nothing. Intrinsically human thought process. There is, however, a difference between greed and voracious greed, like that practiced by “the taxman”.
Here’s the story. A number of (formerly) rich individuals made investments with the guidance of a wise man, who promised and delivered greater riches. Regularly. For a number of years. Now, the “too good to be true” factor finally kicked in, and we have learned that there never was any greater anything. It was all a paper scheme.
The investors, being both wise and honest, paid their taxes each year. Which begs the question: if there wasn’t any real earnings, can they have back the tax monies. Unfortunately, no. Even when there wasn’t any real money, the taxes are still due. Worse, the government wants punitive damages for the fraud, so some of those that spent the non-profits rather than investing them face sanctions.
Just a thought. Should one ever play Monopoly? The government now has legal precedent for taxation of money that doesn’t exist.
