No. of Recommendations: 13
A (very) small silver lining on this from my read is that it appears to ratchet up to the 20% level gradually.
So presumably, if you're an overseas investor and the US government decides your country has been "discriminatory", in theory you could sell your assets and only incur a 5% increased tax rate, not the full 20%.
Of course, making a sale at what might be a very inopportune time just to avoid the larger future tax rate carries its own risks.
Yes, it's gradual as written. 5% higher rate the first year, 10% the second, 15% the third, 20% extra at the max.
Rather than thinking about the slow boil, the sensible conclusion for a non-US person is not to invest in the US. Why risk it? Why risk another change to the risks? Don't invest any more in the US, and maybe sell some or all of the stuff you already own before you get caught in more nets. Personally my concern is withholding taxes on capital gains next.
But be of good cheer. There are 1500 tickers on European exchanges with earnings yields over 10% and market cap over a billion. (many duplicates due to multiple listings). I figure they can't all be duds. And that's just boring old Europe.
Jim
