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Yes, you and I would have reaped the benefits of compound interest - if the “wash sales” law is repealed. What’s wrong with that?
by MikePlacid 4y ago
Yes, you and I would have reaped the benefits of compound interest - if the “wash sales” law is repealed. What’s wrong with that?
- anonymouskimmer 4y agoA couple of things wrong with wash sales: 1) I can't reap the benefit, because I don't have enough income to save for retirement (outside of my pension). If I did, like most people, I'd likely be saving in something like a 401(k) that is tax-deferred. Tax-deferred retirement accounts, by law, gain no additional tax benefit from a wash trade. https://www.irs.gov/newsroom/what-if-my-401k-drops-in-value https://www.irs.gov/newsroom/what-if-my-401k-drops-in-value 2) You incentivize people to sell and buy additional securities outside of their normal investment planning. This will have a market distorting effect when compounded over many, many stockholders.