With all the talk about tax cuts, perhaps there is no better time to suggest cuts in the complexities involved in computing capital gain taxes. By the time the effects of stock splits, mergers, acquisitions and sales are evaluated, the computations of capital gains become an exercise in nebulous mathematics.
Consider the fate of an AT&T shareholder: With no further action on his part beyond making the original investment and accepting proportionate shares in each of the Baby Bells at divestiture, he finds he is or has been a shareholder of AT&T, Bell Atlantic, Bell South, NyNex, Ameritech, SBC, Pac Tel, USWest, Air Touch, Vodafone, Verizon, Qwest, NCR, Media One, Lucent and AVAYA.
In conclusion, we strongly urge that the government require companies to furnish all pertinent information to the investor with each transaction to facilitate future capital gains tax computations.
Citizens Committee For Capital Gains Tax Reform