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practically free indeed, vs the practically have to pay for keeping my savings on a savings account... shrugs in discontent (tax is higher on my savings then th

practically free indeed, vs the practically have to pay for keeping my savings on a savings account... shrugs in discontent (tax is higher on my savings then the interest i get, for those that didn't understand)

oneeyedpigeon 9y ago
You have to pay tax on your savings? What country are you in?
- flipp3r 9y ago
  Not the parent comment but in the Netherlands where I live you have to pay tax on your savings once it exceeds about 21K EUR. The government then makes up that you must be at least getting 4% (up to 9% if you have up to 1M) interest, and it wants 30% of that interest of anything over that 21K EUR limit. Meanwhile the current interest at banks is anywhere from 0.05% to 1% here (most major banks are around 0.2%).
  - Nokinside 9y ago
    The way you describe it, it's not tax on savings, it's investment income tax. Almost all countries have it. As a general principle taxing personal investment income should be taxes at least the same amount as labor income. Taxing labor has more negative externalities than taxing investment income.
    - jlamberts 9y ago
      I think they're saying that they're being taxed as if they were getting 4% interest on their savings, when in reality they're getting less than 1% because rates are low. So even though it's nominally a tax on interest earned, it's effectively a tax on value of assets held in savings over 21k.
  - deleted 9y ago
    [deleted]
shove 9y ago
pretty sure you're not paying any tax on the money in your savings account (beyond income tax in the year in which it was earned)
- munin 9y ago
  possibly they mean pay as in losing value to inflation?
  - ghostbrainalpha 9y ago
    It's crazy what people are reading into this comment. By practically pay, he just means he has a very low interest rate, and possibly some regular account fee's.
- djrogers 9y ago
  That's valid for some countries, not all.

oneeyedpigeon 9y ago

You have to pay tax on your savings? What country are you in?

flipp3r 9y ago
Not the parent comment but in the Netherlands where I live you have to pay tax on your savings once it exceeds about 21K EUR. The government then makes up that you must be at least getting 4% (up to 9% if you have up to 1M) interest, and it wants 30% of that interest of anything over that 21K EUR limit. Meanwhile the current interest at banks is anywhere from 0.05% to 1% here (most major banks are around 0.2%).
- Nokinside 9y ago
  The way you describe it, it's not tax on savings, it's investment income tax. Almost all countries have it. As a general principle taxing personal investment income should be taxes at least the same amount as labor income. Taxing labor has more negative externalities than taxing investment income.
  - jlamberts 9y ago
    I think they're saying that they're being taxed as if they were getting 4% interest on their savings, when in reality they're getting less than 1% because rates are low. So even though it's nominally a tax on interest earned, it's effectively a tax on value of assets held in savings over 21k.
- deleted 9y ago
  [deleted]

shove 9y ago

pretty sure you're not paying any tax on the money in your savings account (beyond income tax in the year in which it was earned)

munin 9y ago
possibly they mean pay as in losing value to inflation?
- ghostbrainalpha 9y ago
  It's crazy what people are reading into this comment. By practically pay, he just means he has a very low interest rate, and possibly some regular account fee's.
djrogers 9y ago
That's valid for some countries, not all.