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The estimation of 15% loss of market cap due to the 2.5% cap tax is laughable. That is effectively a reverse buyback of 2.5% every year. It would leave many com
by colinmhayes 6y ago
The estimation of 15% loss of market cap due to the 2.5% cap tax is laughable. That is effectively a reverse buyback of 2.5% every year. It would leave many companies with 0 or negative profit. Any company with P/E above 40 immediately loses money. 20 has their profit chopped in half. The values of these companies would be reduced by at least 50%.
- kilotaras 6y agoUm....so what? Stock market is the way to efficiently allocate capital. If value of every company is halved it changes nothing to relative performance of them.
- colinmhayes 6y agoThis tax would raise much much less money than Sam expects.