Aielyn said:
I've left off the rest, because I think we're not going to make any further solid arguments either way - it'll just end up being the same arguments back and forward, with no resolution. As for this bit, I have to wonder - dividends are basically the point of the stockmarket to begin with. If you wanted to encourage long-term investment, wouldn't it make more sense to significantly lower tax on dividends, and raise them on the capital gains involved in stock price variations? This would discourage "playing the stockmarket", and encourage treatment of the stockmarket in the way that it is meant to be treated - as a mode of investment. But then, perhaps I'm not understanding it well enough, as I've not yet had the chance to actually invest in anything (if I had money, I'd be investing in Nintendo right now). |
They already have a method for doing this in the United States.
That 15% capital gains tax rate only applies to long term capital gains that have been held for 1 year or Longer.
Short Term capital gains are taxed at the regular 35% that you'd pay on income.
