Market Drop Stings Taxpayers With 2007 Gains

Smart Money reports:

Why Does Paying taxes this year seem so painful? Perhaps it's because we're being taxed on 2007 gains that have already evaporated in 2008.

At least that's how it feels to me. Despite the ever-mounting complexities of the tax code, it's generally a simple proposition: The more you make, the more you pay. Conversely, the more you've lost in the market, the lower your bill. April 15 is the one time you can feel really good about those bad decisions that resulted in tax losses the year before.