Marc Andonian

VP/Executive Partner

Pennsylvania

2 years ago
Marc Andonian
VP/Executive Partner
A couple of challenges with your discussion so far. First - it seems that taxing all capital gains at the same rate does not incent individuals or corporations to invest for the long term, and may promote financially expedient behaviors such as short term layoffs, inadequate investment in design/safety, versus delivery of value over the long term. I would rather see special regulations that reduce capital gains rates more progressively based on longer term investment horizons for major shareholders and corporate insiders to ensure a long term view and business strategy. Second, it seems to me that taxing accrued but unrealized gains requires that investors keep money reserved, available/liquid (i.e., un(der)invested) to pay taxes as they are assessed based on performance and timing. This means that the reserves are not invested or working to drive the economy reducing available capital significantly. Depending on the situation, having to pay tax on unrealized gains could trigger major cash flow issues that could cascade into other problems. If, however, the taxes are based on realized gain - they can simply be subtracted from that gain - and an investor can fully invest all of their working capital. My point of view is based on that of an individual investor trying to build assets to support retirement responsibly. I look forward to your comments. See more

Marc hasn't commented yet.

Marc hasn't commented yet.

2 years ago
Marc Andonian
VP/Executive Partner
A couple of challenges with your discussion so far. First - it seems that taxing all capital gains at the same rate does not incent individuals or corporations to invest for the long term, and may promote financially expedient behaviors such as short term layoffs, inadequate investment in design/safety, versus delivery of value over the long term. I would rather see special regulations that reduce capital gains rates more progressively based on longer term investment horizons for major shareholders and corporate insiders to ensure a long term view and business strategy. Second, it seems to me that taxing accrued but unrealized gains requires that investors keep money reserved, available/liquid (i.e., un(der)invested) to pay taxes as they are assessed based on performance and timing. This means that the reserves are not invested or working to drive the economy reducing available capital significantly. Depending on the situation, having to pay tax on unrealized gains could trigger major cash flow issues that could cascade into other problems. If, however, the taxes are based on realized gain - they can simply be subtracted from that gain - and an investor can fully invest all of their working capital. My point of view is based on that of an individual investor trying to build assets to support retirement responsibly. I look forward to your comments. See more

Marc hasn't suggested anything yet.

Marc hasn't shared any story yet.