MET - Metlifecare - one for the fundies?

[Balance]

That means for a momentum trader, and there are a few very clever ones here, or any trader with intent to sell into a higher share price, one needs to beat their market buy price by 33% + fees, just to break even. That's a high bar to achieve and I think that very few take into account ....

You lost me completely!

If you are a trader, you pay tax on 33% of any gains (sell price less buy price).

Where did you get your buy price + 33% of the buy price as a break even point?

To illustrate :

Buy price - $3.00
Sell price - $$4.00
Gain - $1.00
Tax @ 33% = 33c
Net gain = 67c

What you are saying though is this and is entirely illogical :

Buy price - $3.00 and you are saying that share price must increase by 33% to $4.00 or $1.00 to break even?

[peat]

thats what he said Balance.

[Balance]

thats what he said Balance.

Then, he is plain wrong.

A trader pays tax only on gains he makes - so the hurdle rate is anything above 0.00001%, definitely not 33%.

[Ace]

Then, he is plain wrong.

A trader pays tax only on gains he makes - so the hurdle rate is anything above 0.00001%, definitely not 33%.

That's right, it's called capital "gains" tax, not capital tax. I'd hate if it was a tax on all capital every time it's traded in the market, sounds like that would be the best money making scheme.

[Balance]

That's right, it's called capital "gains" tax, not capital tax. I'd hate if it was a tax on all capital every time it's traded in the market, sounds like that would be the best money making scheme.

Shhhhh .... Baa Baa may take that capital idea to Cindy! She is looking for new avenues of taxing the capitalist property and asset owning class.

[nztx]

Shhhhh .... Baa Baa may take that capital idea to Cindy! She is looking for new avenues of taxing the capitalist property and asset owning class.

God forbid -- not another B*******d FIF style Tax being dreamed up surely to inflict on everyone ..

[King1212]

One could argue...the market is too vilotile...got panicked n sold for profit... good reason to avoid tax

[nztx]

One could argue...the market is too vilotile...got panicked n sold for profit...

May be true of the departing Arb Funds to a degree, while many existing & newer holders are eyeing potential future value & the Arb's possible foregone opportunity

[peat]

Shhhhh .... Baa Baa may take that capital idea to Cindy! She is looking for new avenues of taxing the capitalist property and asset owning class.

That's right, it's called capital "gains" tax, not capital tax. I'd hate if it was a tax on all capital every time it's traded in the market, sounds like that would be the best money making scheme.

ah heaven forbid the Tobin tax, don't want no mention of that round here thank you very much

[Balance]

God forbid -- not another B*******d FIF style Tax being dreamed up surely to inflict on everyone ..

Grant Robertson has already stated that in time, which means 2021 budget (if Labour is still in power), the government will be looking at how the country will reduce the debts piled up to counter the economic impact of the virus.

It is the right thing to do - focus on cushioning the economy first but I expect true to form, Labour will use the opportunity to 'sock' it to the rich:

- increase in marginal income tax to 39% & 45% (transitionary & temporary .. Tui one this morning),

- wealth tax on property,

- increase in GST (temporary of course ...pass the Tui...) to 20%,

- more levies on petrol, road charges, surcharges on utilities,

- levy on financial transactions,

and Cindy will be flying the kite with CGT (because the public demands it ... pass the third Tui).

As long as the subsidy for care & rest-homes is increased and national super is adjusted for the above, MET will be fine however.