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Top U.S. Politics Topics

The Billionaire Tax: The Worst Tax Idea Ever?

Musings on Markets • 19 implied HN points • 25 Oct 21
🇺🇸 U.S. Politics Tax policy Wealth Inequality Legislation Political Economy Economic Justice
  1. The billionaire tax targets a very small number of rich people, but taxing such a small group can lead to unpredictable results and lower revenue. It's better to have broader taxes that apply to more people.
  2. This tax includes taxing unrealized capital gains, which means taxing increases in asset value that people haven't actually sold for cash. This creates challenges, as people need cash to pay taxes even if they haven't sold anything.
  3. The new tax may inadvertently affect other areas, like estate taxes, because it changes how asset values are assessed. This could lead to less tax revenue in the future instead of more.

On Market Reactions to Politics

Matt’s Five Points • 0 implied HN points • 24 Jul 11
💰 Finance Market Trends Investing Economic Policy Risk Analysis Political Economy
  1. Market prices can drop significantly during political turmoil, even if the long-term company value remains stable. It's important to spot these opportunities to invest wisely.
  2. There are two main views on raising the debt ceiling: one prioritizes immediate economic stability, the other focuses on long-term debt control. Both need serious action to back up the talk.
  3. Currently, the market shows increased volatility, meaning potential big shifts up or down. Smart investors might find good deals in stocks if there's a chance of a debt deal soon.

Country Risk: A Mid-year 2019 Update

Musings on Markets • 0 implied HN points • 13 Aug 19
💰 Finance Investing Risk management Economic Policy Global Markets Political Economy
  1. When companies invest abroad, they face risks from changing currency values and unstable economies and politics. It's important to balance the potential for growth with these risks.
  2. Different countries have varying levels of risk based on their political stability, legal systems, and economic diversity. Emerging markets often have higher risks compared to developed ones.
  3. Understanding country risk is crucial for investors and businesses. It's not just about where a company is based but also where it operates and earns revenue.