Comment by ixtli
6 hours ago
Sorry to hear you got priced out :( Unfortunately i am also quite pessimistic about the future of europe and the us, too.
6 hours ago
Sorry to hear you got priced out :( Unfortunately i am also quite pessimistic about the future of europe and the us, too.
The Netherlands is taking action against the brain drain by rapidly importing highly skilled migrants through various tax lowering schemes in the first five years of living here.
However plenty of those people leave after that period. Especially with the upcoming 36% unrealized capital gains tax on all your savings and investments.
Feels a bit like ISPs giving discounts to new customers only.
This is misleading. It's actually taxing 36% of _assumed gains_ of say 5% on all assets. So if you have $1M in savings, you'll end up paying 1.8% or $18K/annum, regardless of the actual investment return. I can see it would be painful during down years, but most of the time it would be ok.
No, that's not ok.
Many years ago, a friend of mine in the Netherlands had the same job as another guy, earning the same money, my friend being extremely thrifty, the other guy splurging. When they both found themselves out of a job at the same time, my friend got no support from the government as he had savings, while the other guy started getting a very generous allowance.
This goes directly against all that is reasonable. This is directly discouraging financial responsibility. My friend is thrifty just for the sake of it, he knows it's not in his interest. But he gets the short end.
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That is the current system. In the new system it will be 36% on all capital gains, no more assumed gains. And an €1800 a year tax-free threshold.
Also it's a bit more, right now you are looking at 36% on 6% or 2.16% per year with a €59k threshold. So a bit over €20k a year on that €1M.
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> brain drain
Where are they draining to?
> 36% unrealized capital gains tax
This sounds like the Netherlands speed running their way out of investments. If a country I was living in proposed this, I would be leaving ASAP, or getting some heavy financial engineering done.
On unrealized gains, wait, what??
Why is this shocking? Surely if you hadn’t grown up with the very technical idea of unrealized gains, this would seem totally normal. The surprising thing is that we let ourselves be convinced in the past that making money with money should be tax advantaged compared to making money with labor.
Unrealized gains are gains.
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Yes.
Say you have €80k in investments. Markets go up, in one year time your investments are worth €90k. You did not sell.
That means you had €10k in unrealized capital gains. Subtract the €1800 per person threshold. €8200, 36% tax is €2952 tax to be paid at the start of the year.
Losses give you tax credits redeemable against future capital gains (not against income tax from employment)
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It's every bit as stupid as it sounds, and IMHO it's probably why we have Donald Trump in the White House today. Harris started talking about taxing unrealized capital gains almost immediately after she was nominated, and that's when the billionaires -- including the ones that own all the media outlets -- started switching sides.
Brought to you by the same party of self-defeating geniuses who thought they could win elections in Texas on a gun-control platform.