Re:Moore's Law for Everything
by colinmhayes on Tuesday March 16, 2021 @04:51PM
(#26482782)
The estimation of 15% loss of market cap due to the 2.5% cap tax is laughable. That is effectively a reverse buyback of 2.5% every year. It would leave many companies with 0 or negative profit. Any company with P/E above 40 immediately loses money. 20 has their profit chopped in half. The values of these companies would be reduced by at least 50%.
[ Parent
| on HN ]
Um....so what?
Stock market is the way to efficiently allocate capital. If value of every company is halved it changes nothing to relative performance of them.
Re:Moore's Law for Everything
by colinmhayes on Wednesday March 17, 2021 @01:51PM
(#26494623)
This tax would raise much much less money than Sam expects.