Sorry; I'm not making myself clear. The current tax law makes it very possible to pay taxes on lost money. My perspective is that this is horrible policy.

A simple example is an equity distribution that sells for less than taxes owed on it. The distribution is taxed at last trade price, and the loss in the sale is limited to $3000 annually.

Many people do not realize how disastrous it can be to assess tax on anything that isn't legal tender, and this article seems to be promoting that.