No. of Recommendations: 7
An unending stream of tax cuts is not fiscally prudent, but I have to say this one makes good economic sense. All countries should do it, even if it were only allowed for holding periods over (say) five years, which would massively cut the paperwork impact.
However it would probably also make sense to increase the capital gains tax rate at the same time. Some part of the reason for the lower rate on cap gains is presumably the assumption that there has been some inflation during the hold period, since in the olden days it took years for something to go up in value an appreciable amount.
Jim
