On September 24th, the Democratic Party's public debate on the Financial Investment Income Tax (FIIT)... Who will come out on top?!
https://singingfiles.com/show.php?l=0&u=45256&id=64305
On September 24th of this year (2024), the Democratic Party is scheduled to hold a public debate on the Financial Investment Income Tax (FIIT).
In this debate, teams of two or three members from both the pro- and anti-FIIT camps will participate, and Democratic Party leader Lee Jae-myung stated that he will consolidate the various opinions to present the best possible proposal.
The anti-FIIT faction includes members of the National Assembly like Lee Un-ju, Kim Boo-kyum, Lee So-young, Jeon Yong-ki, and Lee Yeon-hee, who are advocating for a delay in implementing the FIIT.
On the other hand, the pro-FIIT faction includes Policy Committee Chair Jin Sung-joon, and vice-chairs Ahn Do-geol and Lim Kwang-hyun.
What’s interesting here is that Jin Sung-joon, the Policy Committee Chair who supports the FIIT, has never traded stocks. (It’s amusing that someone who has never invested in stocks supports the implementation of the FIIT. Can those of you who have traded stocks or cryptocurrencies understand how that might feel? Haha.)
For example, it’s like someone who knows nothing about your job giving you advice on how to do it!
https://singingfiles.com/show.php?l=0&u=45256&id=64305
And...
Currently, due to the risk of the FIIT being implemented, both foreign and wealthy domestic investors are slowly pulling their funds from the market. (This isn’t something the media will cover extensively, right?)
Also, as I mentioned in a previous post, when Taiwan implemented the FIIT, their stock market plummeted dramatically. Taiwan has actually implemented and repealed the FIIT three times, which shows how much political risk is involved there.
And...
If wealthy investors don’t invest in the market, there will be less supply and demand, which means individual investors (retail traders) will find fewer stocks to invest in domestically. This could lead to a shift towards the U.S. stock market or cryptocurrencies, where there is still liquidity.
Private equity funds? They only make money when someone else loses, but with no targets, it’s likely they’ll leave the market as time goes on, right? Haha.
As for cryptocurrencies, since so many people are investing globally, as long as you avoid the coins likely to fail, there’s no need to worry too much.
In any case, with the Democratic Party holding the majority of seats, how they handle this issue will also impact the next presidential election. Lee Jae-myung is surely aware of that.
So, shall we wait and see what choice Lee Jae-myung makes with the next election in mind? 😊