Jessica Holzer writes for Forbes that Paulson, with his $700 million equity stake in Goldman Sachs, will "have the chance to diversify a good chunk of those holdings without paying a dime to the Internal Revenue Service.Having 700 million eggs in one basket is not a very good investing strategy. Paulson can now thoroughly divest and reallocate his money with no tax consequence. Given Paulson tax bracket, that's a very, very heavy incentive to take some shit from Bush, at least long enough to get reallocated. Then again, perhaps a few hundred million here or there doesn't matter to him.
"By accepting the Treasury post, Paulson is poised to take advantage of a tax loophole that allows government officials to defer capital gains taxes on assets they have to sell to avoid a conflict of interest, as long as the proceeds are reinvested in government securities or a broad array of mutual funds approved by the government within 60 days. . . .
"The tax break was designed to ensure that the wealthy are not deterred from taking posts in government because they fear a big tax hit. But it amounts to a significant perk of public office."
I'm a very lucky person with every allergy known to man but still happy to be enjoying a wonderful life living in the best place in the world!