Should you include computer play in your record keeping?

[Tom]

I just re-read your previous post and where you say "......even though there is no actual investment in any business, and even if you do not risk any of your own money, but trade another investor’s funds and take a cut."

Essentially, you are describing what every single bank in the world does. Banks trade and invest using customer's money then take profits from it. So how is that any different?

[Norm]

Any tax "incentives" are easily countered by taxes, and I have never heard of tax incentives in the financial markets (other investments, of course).

So how is that any different?

I'm talking about individual taxes, not corporate taxes. You can pull money out of this hedge fund, and pay long-term capital gains; even though there is no investment in an actual business (in fact the opposite since you're short-selling), and even if it is short-term. In other words, you get a tax incentive in the financial markets.