标题: Taxation and Investment Risk Question [打印本页] 作者: cjs238 时间: 2011-7-11 19:34 标题: Taxation and Investment Risk Question
Which of the following moves by a government would most likely lead to the government taking on more investment risk?
A) Moving from a heavy dividend tax regime to a common progressive tax regime.
B) Moving from a common progressive tax regime to a heavy dividend tax regime.
C) Tax regimes cannot shift investment risk.作者: bodhisattva 时间: 2011-7-11 19:34
Hrm, that makes sense. I definitely over thought that one.
I went with A. Lowering tax rates on dividends would cause more money to go into equity causing an aggregate increase in investment risk.
Should have thought from a micro sense.
Thanks.作者: ll11 时间: 2011-7-11 19:34
B
Investor risk is SD*(1-T), so government share is SD*T. To increase government risk, raise taxes or increase risk in the portfolio.
NO EXCUSES作者: nannan66 时间: 2011-7-11 19:34
How do we know a heavy dividend tax system will have a higher tax rate applied to the SD? What am I missing?
edit: meant heavy dividend system...question still stands
Edited 2 time(s). Last edit at Monday, May 23, 2011 at 12:27PM by abushey31.作者: aidebaobao 时间: 2011-7-11 19:34
abushey31 Wrote:
-------------------------------------------------------
> How do we know a common progressive tax system
> will have a higher tax rate applied to the SD?
> What am I missing?
Compared to a heavy dividend tax regime, it doesn't.
