More Sticks and Carrots Capitalism From Japan
This year capital gains rates doubled, but you can avoid that if you put the money into a special account which can only hold Japanese equities. The proper way to get people to buy stocks is to make them attractive investments, not to punish people for buying anything else. And the proper way to make stocks an attractive investment is to encourage economic growth, real growth, not inflationary pseudo-growth.
“In 2013 net sales rose to a record Y7.2tn, with transactions accelerating in the final few weeks as investors looked to lock in profits before the tax rate on capital gains doubles from 10 per cent to 20 per cent, effective on January 1. The deadline for doing so was on Christmas Day, as transactions from Boxing Day onwards settle when the market reopens on January 6.
Brokers report that much of the proceeds from those sales are now sitting in reserve funds in securities accounts, ready for redeployment. They hope that a good chunk of it will end up in NISAs, which allow a five-year tax freeze on dividends and capital gains provided the money – up to Y1m a year – is invested in stocks, investment trusts or exchange-traded funds.”