Thank you, Damon, for shedding light on the complexities and potential pitfalls of taxing unrealised capital gains. Your analysis highlights the significant risks to investment behaviour and economic growth, particularly for illiquid assets like startups and property. The example of forced asset sales to cover tax liabilities really driv…
Thank you, Damon, for shedding light on the complexities and potential pitfalls of taxing unrealised capital gains. Your analysis highlights the significant risks to investment behaviour and economic growth, particularly for illiquid assets like startups and property. The example of forced asset sales to cover tax liabilities really drives home the liquidity issues this policy could create.
I also appreciate the global context—pointing out that no major economy has successfully implemented such a tax underscores how experimental and risky this approach is. It’s a compelling case for why policymakers need to tread carefully and consider the long-term impacts on Australia’s financial ecosystem.
Agreed, Kenelm. Call me cynical, but I think policymakers have absolutely considered the long-term impacts. I just do not think Australia's financial ecosystem is their concern? Hopefully I am wrong. Because, aside from corruption and weaponisation of the tax system, there is only one other rational basis for a UCGT, which I chose not to mention: liquidating and extracting as much wealth as possible before an inevitable financial collapse. That said, assuming that rationality is a factor is a truly crazy conspiracy theory. ;-)
Thank you, Damon, for shedding light on the complexities and potential pitfalls of taxing unrealised capital gains. Your analysis highlights the significant risks to investment behaviour and economic growth, particularly for illiquid assets like startups and property. The example of forced asset sales to cover tax liabilities really drives home the liquidity issues this policy could create.
I also appreciate the global context—pointing out that no major economy has successfully implemented such a tax underscores how experimental and risky this approach is. It’s a compelling case for why policymakers need to tread carefully and consider the long-term impacts on Australia’s financial ecosystem.
Agreed, Kenelm. Call me cynical, but I think policymakers have absolutely considered the long-term impacts. I just do not think Australia's financial ecosystem is their concern? Hopefully I am wrong. Because, aside from corruption and weaponisation of the tax system, there is only one other rational basis for a UCGT, which I chose not to mention: liquidating and extracting as much wealth as possible before an inevitable financial collapse. That said, assuming that rationality is a factor is a truly crazy conspiracy theory. ;-)