The richest 1% in the Netherlands pay relatively less tax than everyone else and their incomes have risen more sharply, according to new calculations by the government’s macro-economic forecasting agency CPB. Earlier research, based on figures from 2016, showed that people on the highest incomes pay less tax and the new figures, based on the period 2011 to 2019, paint a similar picture. The very richest, or 0.01% of the population, paid a tax rate of some 28%, well below the 40% paid by people with average incomes...
If it applied to your primary residence, then your prospects to afford to move would be pretty slim. Of course, for most people this won’t matter, since primary residence is exempt for a good amount every two years.
I could also imagine a capital gains offset to account for inflation. If you have 5% gains with 9% inflation, you get to pay taxes despite in real terms losing money.
there’s a special 100% exemption for sale of a primary residence you lived in for 3 of the last 5 years in the US so it has little to do with fhe rationale for the low capital gains of everything else.
The inflation argument would be fair if there were automatic adjustments for inflation in wages including minimum wage. You get to pay taxes while losing money on your salary so you might as well lose them on capital gains. This is not the bucket of crabs argument, it’s just fairness as i’m absolutely in favor of taxes.
Depends on the capital.
If it applied to your primary residence, then your prospects to afford to move would be pretty slim. Of course, for most people this won’t matter, since primary residence is exempt for a good amount every two years.
I could also imagine a capital gains offset to account for inflation. If you have 5% gains with 9% inflation, you get to pay taxes despite in real terms losing money.
there’s a special 100% exemption for sale of a primary residence you lived in for 3 of the last 5 years in the US so it has little to do with fhe rationale for the low capital gains of everything else.
The inflation argument would be fair if there were automatic adjustments for inflation in wages including minimum wage. You get to pay taxes while losing money on your salary so you might as well lose them on capital gains. This is not the bucket of crabs argument, it’s just fairness as i’m absolutely in favor of taxes.