The primary reason for taxes is to generate revenue Pretty Nutcracker 2020 The Year We All Went Nuts Shirt for the government. It is not to make sure everyone pays some taxes. So, the govt. is still generating revenue on the $10M dollars that Person A is saying they lost. The people or entities to whom that 10M dollar was paid are either paying taxes on it or themselves are writing some or all of it off. The point is that is it up to Congress to set the tax policy that is in line with the revenue needed. The balance should be that no more tax is harvested nor left on the table than need is for the current circumstances.
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I don’t know why you are putting the word Pretty Nutcracker 2020 The Year We All Went Nuts Shirts loss in quotation marks. It literally is a loss in your scenario. No one, absolutely no one pays taxes on negative income. It is not a loophole! If you have a net loss of say 10M dollars this is where you went wrong. Trump lied about his so-called losses. He admitted that he estimates his valuations losses based on his feelings. I agree that we need tax reform but not for the reason of trump. He is just a fraudster and a pretty stupid one at that who is stealing from the American public.
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