From comments on this previous post on US equity values:
If the US wants more foreign inflows into stock, it should reduce the non-resident dividend tax rate from the very high 30% that it is today. Currently, foreign investors are encouraged to invest in US treasuries since the interest is tax-free but not in US stocks. Since my country of residence has no dividend or capital gains taxes, it generally makes more sense for me to invest in British, Brazilian and Indian stocks (0% tax) and to some extent in Chinese stocks (10% dividend tax).
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