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I love the idea, I just have one question. What happens if we want to raise the tax rate in the future? As far as I can see we can either dilute the shares of
by RugnirViking 7y ago
I love the idea, I just have one question. What happens if we want to raise the tax rate in the future?
As far as I can see we can either dilute the shares of the other shareholders, which really wont go down well with the shareholders, or we can buy shares in every company in the country, which will cost the taxpayer a mindboggling amount.
I mean I suppose diluting the other shares isn't all that different in absolute shareholder returns to what we have now, but the optics of seem somehow different and likely to cause trouble to me.
- projektfu 7y agoIn theory, if you could collect the corporate tax rate perfectly, an increase in the rate would lower the price of all the shares, and a decrease would increase the price of all the shares, according to the amount of expected return.