The U.S. should follow suit. From the introduction to a January 2012 post:
Over the last few years I've come to believe that all income, earned and unearned, should be taxed at the same rate, that preferential taxation of capital no longer leads to the intended policy effects of job creation and increasing capital investment in plant. property and equipment but rather is a bought-and-paid-for scam perpetrated by the financier class.
On a related point, it's time to get rid of the carried interest loophole which taxes income at cap gains rates for private equity and hedge funds.
That carried interest should not be treated as a capital gain can be proven quite easily.
Show me one tax return where a carried interest capital loss was allowed.
[you won't be invited to any of the meetings ever again -ed]...MORE
And today's story from Bloomberg, August 4:
- At least 11 firms have or are set to approve share repurchases
- Money got from buyback to now be treated as dividend income
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Companies in India are gearing up for increase in share buybacks in the coming weeks before new tax rules on repurchases take effect on Oct. 1.
At least 11 firms, including Indus Towers Ltd., have or are set to approve share buybacks shortly after the new regime was proposed in the budget on July 23. This is a jump from the average of about four transactions per month in 2023, data from primeinfobase.com show.
“Some companies are using the short window available to come forward,” said Siddarth Bhamre, head of research at Asit C. Mehta Investment Interrmediates Ltd. “The ones with low debt and cash in hand to pay investors might be tempted to do so.”....
....MUCH MORE
As I've previously threatened:
One of these days I'll get around to doing a "The diminishing returns to capital deepening" post, or somesuch.
