For example:<quoted text>
...set up businesses to lose money for tax write offs, etc.
The CG rate is nothing compared to some other tax loopholes that are out there - IF you're invited to sit down at the table and that happens only if you net worth is....
There are at least three areas of business that enjoy special loopholes, and all three are high-profile - professional sports, car racing (NASCAR and F1) and the motion picture industry. In pro sports, the team is incorporated as a Limited Partnership (they all are), and an LP share runs from between $100 million to $300 million, depending on which table you're at.
What do you NOT get for your investment? A ROI (profit)!
But that's the game. First, you'll get guaranteed operating LOSSES on the investment (share) that run into the millions. You also get to write off a 187% accelerated declining balance depreciation (over 5 years) plus a 3% investment tax credit. After the five years? You "trade" with one of the other LPs and start the process all over again.
The other two areas operate a little differently but the results are the same. LOL! One that's amusing: The original "Rocky" has grossed well over a billion dollars, but has yet to show a taxable profit! "Top Gun" and "Days of Thunder" are both big losers as are others.
All that is really great if you're having a good year. If it's not such a good one, you "sell" your interest to one of the other LPs who is having a good one, for a handsome amount, who pays you using off-shore shell corporate accounts.
Sure, all of us could do the same thing, it's all legal, but we need to have a net, before tax, off-setting income that is in the hundreds of millions before you get to play.
And some of you bitch about some poor bastard gaming the system.