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Being taxed differently is pretty significant. Kind of weird to impose a tax and then also have an easy way around it.
by maxerickson 3y ago
Being taxed differently is pretty significant.
Kind of weird to impose a tax and then also have an easy way around it.
- nabla9 3y agoIt just delays taxation. It's more important for small investors in the US, because in the US even index funds must pay tax for dividends. Here in EU we can buy US index funds not available for US citizens where dividends are reinvested without tax. For us it does not matter that much.
- maxerickson 3y agoIn a hand wavy theoretical sense you can maybe say it "just" delays taxation, but shareholders aren't going to go out of their way to ensure that they sell at a price that incurs the equivalent taxation. And then a tax that sort of directly relates back to the cashflow of the company is not equivalent to a tax that is based on the capital gains that shareholders end up with.