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They invest in lower risk securities which leads to a bull market in bonds and guilts which has its own problems. It also stifles innovation and messes up pens
by walshemj 8y ago
They invest in lower risk securities which leads to a bull market in bonds and guilts which has its own problems.
It also stifles innovation and messes up pensioners as their income is based on gilt yields.
- munk-a 8y agoI don't understand why investors would do this, it seems like an unnatural response. If all capital gains are being taxes as income these investors would just voluntarily be choosing to make less money if they picked this strategy. Their strategy selection would equalize to being about what it is now but each cycle would yield them less money to reinvest and yield the government more money to invest. It can be your opinion that private investors are more efficient than the government but funding our "necessary services" (i.e. having an army, what not) is so deprived of income that it is being extracted through a regressive income tax. FYI, I'm all for cutting pork, but the income stream and what we end up spending that money on are two different issues.
- dragonwriter 8y ago> They invest in lower risk securities That's still investing and the idea that higher taxes on capital income would reduce yield targets for capital investments is backwards.
- icedchai 8y agoSeems like they’d need a higher return due to higher tax.