Exactly. Competition keeps capital gains taxes reasonable, but that doesn't apply to earned income tax. CGT is a mildly progressive 30-33 % here. If the govern

Exactly. Competition keeps capital gains taxes reasonable, but that doesn't apply to earned income tax. CGT is a mildly progressive 30-33 % here. If the government were trying to get 60 % which is my marginal tax rate for earned income, their revenue would likely plummet because there would not be much sense in showing capital gains in this country. Anyone selling a business etc would move to that great tax haven, Sweden, for the year when they sell. For us workers, the best tax planning option is to switch earnings to non-taxable form like working for ourselves. E.g. if I want to have a new garden shed, I don't pay someone to build it. I take unpaid leave from work and build it myself. This way, the tax office pays most of my garden shed. This country has probably the most expensive carpenters you can think of...