We would need to know an assessment time basis for this to know what it means. If it's assessed at the end of each year, that would be bad. If it's assessed on every single uptick, every investor would be at least broke and probably in debt in a month.
Can you imagine the crazy volatility that would be induced at/around “assessment” time each year? Insane. You’d be liquidating a portion of your assets to pay the taxes on the unrealized gains on the rest.
Of course unsaid here is that under a tax regime like this there WOULD BE NO unrealized gains, or gains of any kind for that matter. So they’d kill capital investment without benefit. Unless that Is the benefit?
We would need to know an assessment time basis for this to know what it means. If it's assessed at the end of each year, that would be bad. If it's assessed on every single uptick, every investor would be at least broke and probably in debt in a month.
Can you imagine the crazy volatility that would be induced at/around “assessment” time each year? Insane. You’d be liquidating a portion of your assets to pay the taxes on the unrealized gains on the rest.
Of course unsaid here is that under a tax regime like this there WOULD BE NO unrealized gains, or gains of any kind for that matter. So they’d kill capital investment without benefit. Unless that Is the benefit?