From: Mac Norton <mnorton@cavern.uark.edu>
Date: Thu, 24 Aug 95 07:01:53 PDT
To: Michael Froomkin <mfroomki@umiami.ir.miami.edu>
Subject: Re: e$: The Book-Entry/Certificate Distinction
In-Reply-To: <Pine.PMDF.3.91.950824094255.620953214B-100000@umiami.ir.miami.edu>
Message-ID: <Pine.SOL.3.91.950824090026.23418D-100000@cavern>
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Income tax, right--but may not this be correct about excise
taxes?

MacN

On Thu, 24 Aug 1995, Michael Froomkin wrote:

> On Wed, 23 Aug 1995, Alan Penny wrote:
> [snip]> 
> > This also has the interesting feature of avoiding all taxes. Until you
> > "cash out" your account you would not have to pay taxes, if you never
> > need cash out your account, you never need to pay taxes. I suspect that
> > our friendly governments would try to "correct" this "problem" in the
> > long run if they can.
> > 
> Nyet.  Any time you barter A for B, even electronically, you have a 
> taxable event.  All you have done in the above is describe a system in 
> which it is harder to detect the taxable event.
> 
> A. Michael Froomkin        | +1 (305) 284-4285; +1 (305) 284-6506 (fax)
> Associate Professor of Law | mfroomki@umiami.ir.miami.edu
> U. Miami School of Law     | 
> P.O. Box 248087            | It's hot here.  And humid.
> Coral Gables, FL 33124 USA |
> See (experimentally & erratically) http://viper.law.miami.edu/~mfroomki
> 
>