3 ms·
It's effectively a 1.2% wealth tax that's based on a 30% tax on assumed capital gains of 4%. The thing is, the assumed gains are generally far lower than realit
by mcv 1y ago
It's effectively a 1.2% wealth tax that's based on a 30% tax on assumed capital gains of 4%. The thing is, the assumed gains are generally far lower than reality, and the tax is also much lower than regular income tax.
- sigmoid10 1y agoThe assumed yield varies by asset. For capital gains from investments it is >6% (roughly the expected return on the stock markets for the last century), for cash it is <1% (real returns used to be a bit higher but currently are extremely low, effectively overtaxing by a lot). But as already said above they are currently changing the law to use the actual yield instead, so the top level comment advice doesn't really matter anymore.