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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
by 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 agoThe 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 agoI 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]