One of the most economically equal countries in the world is planning to institute a 36% tax on unrealized capital gains on shares in 2028. This would arguably be the most punishing tax policy for private investors in the western world. It is not clear how founders and employees holding locked stock would be treated.
2. What do you think people should discuss about it?
There is a lot to discuss, here is an especially salient point: the government believes there is no reason to expect this tax policy will result in behavioral change. Meanwhile tax-advantaged pension accounts, LLCs, real estate (taxed when realized), and the nations of Belgium, Luxembourg, and Switzerland are all right there.
Is there any world where this raises its revenue goals? Why does economic government policy seem to get dumber across the west?
SeaSlice6646 on
Just so we are clear on this:
this is not a new tax on unrealized gains, this is a reform in how the current tax in box 3 is calculated.
In the past it used to be a fortaire tax on the increase in wealth, and now they are changing it to real tax on the increase in wealth.
The previous method was worse, this is a strict improvement; no its still not great, but it is an improvment over the past method of taxation.
2 Comments
1. Why is this relevant for r/neoliberal?
One of the most economically equal countries in the world is planning to institute a 36% tax on unrealized capital gains on shares in 2028. This would arguably be the most punishing tax policy for private investors in the western world. It is not clear how founders and employees holding locked stock would be treated.
2. What do you think people should discuss about it?
There is a lot to discuss, here is an especially salient point: the government believes there is no reason to expect this tax policy will result in behavioral change. Meanwhile tax-advantaged pension accounts, LLCs, real estate (taxed when realized), and the nations of Belgium, Luxembourg, and Switzerland are all right there.
Is there any world where this raises its revenue goals? Why does economic government policy seem to get dumber across the west?
Just so we are clear on this:
this is not a new tax on unrealized gains, this is a reform in how the current tax in box 3 is calculated.
In the past it used to be a fortaire tax on the increase in wealth, and now they are changing it to real tax on the increase in wealth.
The previous method was worse, this is a strict improvement; no its still not great, but it is an improvment over the past method of taxation.