Q: Hi Peter, It will be nice to get your detail opinion on today upcoming budget from investors point of view via a blog. Just a suggestion.
5i Research Answer:
The media is going to cover this extensively so we may not be able to put together a blog in time here. From a market point of view, investors of course are not going to like the change to the capital gains inclusion rate. This will also be a disincentive for investors. We also do not think it will raise as much in taxes as the Feds think. Rich investors will likely simply just borrow money and not sell their investments, hoping for a reversal of this ruling over time. Not to get political but lower spending is what would be better for the country.