Rob Hosking
Monday 2nd October 2006 |
Text too small? |
Individual investors will pay less than 5% if their investments make a lower return than that amount, and will have any returns above 5% tax free.
However managed funds will pay a flat rate of 5%, regardless of how well or poorly they perform.
Krippner says this is too high.
He calculated investment returns for four major global equity markets - the United States Japan, Germany and the United Kingdom - as far back as 1950.
Once adjusted for inflation (Krippner takes out the high inflation of the 1970s and 1980s and replaces it with an assumption of 2.5% inflation) he finds the average return is around 3.5%, and says that is what the rate should be for managed funds.
The present proposal, he says "effectively means that individuals will on average be taxed at a lower rate, thus falling short of the government's intention of placing individuals and managed funds on an even footing."
No comments yet
Fonterra appoints permanent COO
Manawa Energy FY24 Annual Results & Webcast Details
Seeka Provides the Results of Meeting - ASM
April 19th Morning Report
PGW Guidance Update
CNU - Commerce Commission releases draft expenditure decision
Spark announces departure of Product Director
TGG - T&G appoints new Director
April 18th Morning Report
SKC - APPOINTMENT OF CHIEF EXECUTIVE OFFICER