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Yes the key is to stop taxing capital gains and dividends at different rates. Interestingly here in Australia any company tax paid is passed through to the shar
by danieltillett 7y ago
Yes the key is to stop taxing capital gains and dividends at different rates. Interestingly here in Australia any company tax paid is passed through to the shareholders as a tax credit. This not only encourages companies to pay tax, but it encourages companies to pay dividends rather than buy back shares.
The price of gold suggests even buy backs are coming to an end of their effectiveness. There is so much money now sloshing around that nobody has any idea what to do with it.
- sokoloff 7y agoIn the US, long term capital gains and qualified dividends (which is most of them) are already taxed at the same rate.
- danieltillett 7y agoGood to see. There is still the issue of double taxation.
- Animats 7y agoInterest paid, though, is not. Which gives debt a tax edge over equity.
- tomatocracy 7y agoBut banks are taxed on their net interest margin at the corporate tax rate. Its the same argument as for the 'dividend tax credit' system which Australia has and the UK had 20+ years ago (which used to be called 'Advance Corporation Tax'), ie tax capital returns only once and in the hands of the investor not the payer where possible.