Middle-class people will have to pay more each time they go shopping, will have less money to shop with and, to top it off, their hard-earned savings may drop as well. Sounds like a great solution.
Why am I so skeptical? Because we have been down this road so many times that it’s clear tax increases don’t work. I have a better solution” Lower taxes across the board and watch the economy boom. The state’s coffers will swell and the budget will be balanced. Unfortunately, I feel like a lone soldier beating a dead horse, constantly pounding the table for tax cuts.
But no one seems to be listening, so take it as a given that your taxes are going up again – for the second time in two years.
What about your portfolio?
Flashback to December 2011, when populism trumped common sense as a result of that summer’s tent protests. That’s when I wrote about how devastating the upcoming tax increases would be for the economy. I wrote that with the hike in capital-gains tax, the government take from this tax would actually drop, and voila – as I wrote in a column a few months ago, revenue dropped 30%.
At the end of 2011, as the tax increases were about to take effect, I wrote: “The current issue for the Tel Aviv Stock Exchange, which has dropped significantly this year, is that investors haven’t really been in the mood to buy local stocks.
现在添加公式这些新措施 - 和更多的惊喜 - 这可能损害经济增长，你必须继续为当地股市疲软的良方。具有讽刺意味的是，这实际上会伤害非常人，你是想帮助。
由于在民粹主义和政治生存放，它看起来像下阶层将继续旋转的车轮和到位运行 - 而不是很快就可以有上升的经济地位任何时候“。
It just happens that the TASE, while posting a gain since that point, has severely underperformed major global markets. The S&P 500 has produced a 14% higher gain than the TA-100 index. Most regions throughout the world have easily bested the TASE, including Europe, which has been on the verge of collapse.
So what should you do?
I am no fear-monger, I just like to tell it like it is. Readers of this column know that I am a big cheerleader when it comes to investing in Israel, but I am also a realist. We have seen the evidence in Israel that tax increases hurt stock-market performance.
Investors should speak with their financial advisers to analyze whether their Israeli stock exposure should be lowered in lieu of these tax hikes. While your pension money is mostly stuck in whatever fund you own, now maybe it’s the time to look at market opportunities around the globe, especially for your non-pension monies.
manbetx苹果客户端亚伦Katsman是一书的作者退休GPS: Secu如何浏览你的方式re Financial Future with Global Investing（麦格劳 - 希尔），并且是有执照的金融专业无论是在美国和以色列，并帮助谁开投资账户在美国的人。证券通过组合资源集团有限公司（提供新万博取款周期www.prginc.net）。会员FINRA，SIPC，MSRB，SIFMA。欲了解更多信息，请访问：www.sisoftball.com或电子邮件aaron@lighthousecapital.co.il