"They will be grandfathering, but why penalize new investors?"
it matters not if new investors are treated differently -
all that matters is whether it's a good idea or not
is it a good idea to have an incentive for people to hold longer term investments or not?
Personally, I think it probably is - but, it's only a gut feel.
IMO our nation has a lot of problems and a lot of the issues more than likely come down to short term gain or short term thinking - rather than thinking, planning, and investing for the longer term
the 'concept' stretches over many areas -- right from parliamentary terms to real estate holdings to stock holdings to executive pay that rewards by quarters and a year as opposed to much longer returns and outcomes
short term investing or thinking really gives one a lot of bad things -
equate it to a car or an engine --------- if all you care about is that the thing has to be ready to go by the next morning - then, you probably won't bother checking the oil or water that day - but, if you know that this is the machine and the only machine you have for the next decade - then, you are probably far more likely to check the oil and water every day before you start up
it's just the way of humans
I don't think that a 50% capital gain deduction is a bad idea ------------ I would rather see it over 5 years than one - it might stop the issue of buy and flick even more so - which is what has driven our housing in capitals to levels that surely everyone can see is pretty damaging.
