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While many investors believe tax-sheltered accounts are the place for long-term investments to take advantage of compounding without a tax drag, that's not necessarily the case.
In addition to the tax drag such behavior entailed, Odean found that in the year after they were sold winning stocks went on to gain 3.4 percentage points more than the losers to which investors clung.
It's thus very important for Washington to enact a major tax cut that would more than overcome the tax drag that we're going to experience from states and municipalities.
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The write-downs, which are deductible, will have an after-tax drag of $1.6 billion, the bank said, adding that further write-downs may be needed.
The revelation of his non-dom tax status, dragged out through the Freedom of Information Act, is an acute embarrassment for the Tories.
It is astonishing that someone so bright and well-intentioned does not see the hypocrisy in calling taxes a "drag," "destructive" and "the culprit" and then complaining that money was "slashed" from an entitlement program.
But the tax bureau cannot drag its feet for ever.
Second, the 50p tax puts a drag on economic growth.
Their growing ranks show how the Treasury can covertly increase income tax through "fiscal drag".
Economists had warned that the full force of impending tax changes could drag the country into a recession.
David Ruffley, a Tory member of the Treasury Select Committee, said raising tax thresholds could drag more people into the 40p rate of tax.
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