If you REALLY want to know how sad the U.S. equity markets have become take a gander at one important tidbit of information for all stock market investors.
Mr. Ripley, a drum roll please....
Believe it or not....
The Chinese DO NOT tax capital gains on stock market profits.
On the other hand....
The Obama Administration not only does tax capital gains at an excessive rate but is planning a major tax increase. Mr. Obama wants to DOUBLE the current capital gains tax rate from 15% to 28%. In the best Orwellian language he can muster he calls this nonsense "Tax Fairness for the Middle Class."
By the way, the Chinese also have a flat 10% tax on all other types of capital gains, beating the U.S. there hands down too
Who would have thought that the Chinese Communist Party in Beijing would have a more logical, fair, and economically vibrant capital gains tax policy than the U.S. Congress in Washington?
The equity markets in the U.S. are becoming has-beens. Since 2000 the New York stock exchanges have been losing foreign stock listings while the London Stock Exchange has been gaining them.
Why? Sarbanes-Oxley, sure. But excessive tax policies on capital gains are a huge factor. Why are China's stock markets exploding while America's are imploding? Do you think it has something to do with the taxes paid (or not paid!) there?
Robert J. Abalos, Esq.