Can cap gains force changes from hedge funds in their investment mix in the Sensex and India? More importantly, could this be something important to review while evaluating US Presidential hopefuls?
Could the presidential hopeful, like McCain/Obama/Clinton, help or hurt US equities markets by keeping short-term/long-term gains taxes consistent v. increasing cap gains taxes?
Imagine if a rise from 10% to 15% drops the Sansex 500 points within minutes, what could it do if a new US government raised gains taxes from 15% to 35% on hedge funds ( http://www.businessweek.com/bwdaily/dnflash/content/feb2008/d... ).
Is it a possibility to further abandon the US economic system more quickly than we already are planning when investors review asset models on growing economies with cheaper taxes? What would you do?
Sensex dips 500 pts as cap-gains tax up, corp taxes unchanged
Mumbai: The stock market extended its losses with the Sensex dipping close to 500 points within minutes of Finance Minister P. Chidambaram announcing a hike in short-term capital gains tax to 15%, while leaving corporate tax and surcharge rates unchanged.
The 30-share Sensex was trading down by 464.86 points at the day’s low of 17,359.62.
While Finance Minister P. Chidambaram raised tax slabs for personal income tax assessees, he left corporate tax rates unchanged and raised short-term capital gains tax to 15% from 10%.
$50.73 (02/29/08)
