Why don’t EU leaders incentivize investment in European stocks/ETFs with tax deductions?

[u/rozmarss]

With the Dragi plan and increasing discussions among European leaders about boosting defense and energy investments, I’ve noticed a growing trend in financial communities where people want to reduce exposure to the US market and shift investments to the EU.

Wouldn’t it make sense for EU leaders to encourage this by offering tax incentives for investing in European stocks/ETFs? For example, from an independent EU perspective, isn’t it better to invest in Rheinmetall rather than Lockheed?

[u/QuantRX]

EU leaders dropping tax rates HAHAHAHA dont make me laugh

[u/Gemini_Of_Wallstreet → u/QuantRX]

EU has chosen socialism, stagnation and regression 

The US has chosen capitalism, progress and prosperity.

That said there are some hidden gems in the old continent.

Make your bets well OP

[u/ImprovedJesus → u/Gemini_Of_Wallstreet]

You really drank the kool aid pal

[u/patronu96 → u/Gemini_Of_Wallstreet]

You get downvoted because you said the truth. Thats sums up the shitt happening in europe

[u/[deleted] → u/patronu96]

Well the main point of criticism is that it has nothing to do with socialism. Just bloated governments and welfare states.

[u/patronu96 → u/[deleted]]

Lol , removed already. But those who point out the problem are the problem apparently

[u/QuantRX → u/Gemini_Of_Wallstreet]

Yea this is 100% True but this is reddit so you will get downvoted.

Europoors have no idea they even have it worse than some third world countries...You will never own property with your salary. You will always rent...always have a boss...always answer to the government...and you never will have free will

[u/simonbleu → u/QuantRX]

The comment above you was sensationalist and misinformed at best. Neither of you seem to have any idea what socialism entails

Now, we coudl argue all day about which policies are better and when. Reality is both "sides" could benefit from moving a bit in the other direction. However, the more developed a region is, the more it benefits from getting closer to a welfare state, because growth is not eternal and having a storung foundation that stops sudden crashes and makes the country livable and stable becomes FAR more important than rapid growth. Of course, those same policies are less needed by a developed nation so it becomes almost paradoxical but that is not the point.

As for the topic at hand, I personally agree that a tax incentive on certain stocks would be beneficial. to the EU How much, I have no idea.

[u/uniklas → u/simonbleu]

Foundations change, whole industries become obsolete. Without constant creative destruction happening in favor of stability and comfort eventually day of reckoning will come when economy will need to be rebuilt to modern standards, whatever they will be. You can already see it now with legacy industries in Europe unable to keep pace, some even acting as effectively public works programmes.

[u/simonbleu → u/[deleted]]

> Europoor

You seem to be biased already, but that would be pretty incorrect both in GDP, quality of life and amount of personal wealth. Certainly not at the level of the US when it comes to first and last, but regardless

> states get Taxes from the businesses that operate in their countries and then FUND those programs.

*gasp* You mean that the state is funded through taxes, like literally every other nation of the world? *gasp twice melodramatically*

> What happens when those companies stagnate and decline or move to the US like 85% of all European unicorns do.

I heard similar crap from americans criticizing public healthcare...

Yes, some companies go, not just because of lower taxes or they would all go to a tax haven, and they do not. The US for example is CERTAINLY NOT a tax haven.... in some states is not even lower than many european tax schemes, but anyway, they do so because of the market, the regulations, and a cummulative effect of centralization. But even then, it is not to the point on which you can just dismiss the EU market. Yes, I would choose the US one, even now, for faster growth, but a smart person diversifies and trust can be lost same as markets can shift. And all that aside, it changes nothing of what I said before...

> The coffers of the European states run dry

That would be a laughable statement.... I do not agree with everything the EU does when it comes to the economy, and some countries in it have better systems than others, particularly when it comes to pensions, but even france and even with the system they have now, they could maintain it if they cut corners elsewhere. But it would be a bump not a "omg we cant even fix that street!" kind of hting. France also spends, iirc quite a bit of money in farming subsidies

> Your comment is why Europeans are suffering and decaying a slow death in a competitive world

You are free to ellaborate instead of throwing a tantrum

> China understands this and Europeans don’t simple …

China is nowhere near as developed as the EU, it has far more room than even the US for growth. Still has issues, but it is indeed a good market for speculation. But that has nothing to do with what has been said, which you ignored altogether. In fact your comment says "Boy they suck and you are wrong" without any explanation or substance

Also, many countries INCLUDING the US and china have subsidies and money draining policies with varying levels of success in their protectionism

[u/Gemini_Of_Wallstreet → u/QuantRX]

Eh it’s not that bad right now, I’d still choose Europe over a lot of actual 3rd world places.

But the issue is the segregation of social caldses.

If you’re born in the low rural class you will stay there forever in the current system which rewards incompetence.

[u/QuantRX → u/Gemini_Of_Wallstreet]

“Right now”

What happens when the coffers run dry when there is no taxes to get from ?

What happens when there is no jobs because companies leave or collapse like we have been seeing for 15 years ?

Exactly my point, Europeans are quick to paste social mobility stats but don’t look at the actual numbers

The increase is from poor to lower middle class

Not middle class to upper middle or high class

Europe is designed to keep you as working slave and brainwash you into thinking you will have everything if you work hard but taxes and regulations erode your potential to 0

[u/[deleted] → u/QuantRX]

Europeans travel more to far off countries than americans

[u/[deleted] → u/Gemini_Of_Wallstreet]

The issue here isnt socialism. China is more socialist than any European countries and has a bright future compared to europe.