super tax savaged by experts, page-2

  1. cdchi1
    8,972 Posts.
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    10/05/10
    08:21
    Post #: 6675529
    "Our strategist asked Treasurer Swann a question yesterday on this issue and asked why the tax kicked in when returns exceeded the bond rate rather than the bond rate + an equity risk premium of say 5% (otherwise known as a companies cost of capital). Swann did not understand the question no matter how it was re-phrased - in other words the treasurer of Australia does not know what the cost of capital is for Australian companies. This is economics 101! "

    SCARY!!!!!!!!!!!!!!!

    Cdchi1
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