Friday, August 1, 2008

Capital Gains Taxes for Taiwan

Currently Taiwan does not have capital gains taxes for things such as stocks and real-estate/land sales. According to this report in Reuters UK, the Taiwan Tax Reform Committee will be doing a study on whether to put back in place the capital gains tax. Although the report says its largely unlikely to be implemented, why would they even consider it then? Especially, as the article states, at a time like this when the market is in a slump. At least Bevan Yeh knows something about capital gains taxes and its effect on the markets.

"It's not likely that the government will impose the capital gains tax while the stock market is still struggling," said Bevan Yeh, fund manager at Prudential Financial Securities Investment Trust.

Can't say the same for the Democrats in the United States. Although we already have a good ~30% tax on short-term gains, and 15% on long-term gains, Obama feels the need to strip the tax break given to those "rich" Americans, which apparently Obama considers me as since I'm a college student who is working part-time, but invests in stocks. Maybe the Democrats need to learn from people like Mr. Yeh in Taiwan- raising capital gains tax during a recession and a bear market is only going to send stocks down further. When people start seeing their account values of their stock account continue to slide, they get scared and pull out- that's when we get a crash.

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