Modeling a Wealth Tax: http://paulgraham.com/wtax.html
Show this thread
-
There is no serious wealth tax proposal that I know of (please correct me if I'm wrong) that is not a marginal tax over a certain amount. It is misleading and a bit fear-mongering to write an essay that implies there is such a proposal out there.
In the Netherlands the threshold appears to be only 30k euros. That's very close to not being a marginal tax. And that is not merely a proposal, but current law.
-
-
I assumed you were writing about the US?
-
No, this analysis applies equally to any country. I said so explicitly in the second to last sentence.
End of conversation
New conversation -
-
-
I'm writing about the effect of wealth taxes generally, not just about some proposals made in the US this year. Obviously it's implicit that if a wealth tax has a threshold, then the percentage taken by the government will be a percentage over the threshold.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
It does feel purposefully misleading to leave out that wealth tax proposals by current politicians in the US such as
@ewarren start at $50 mil net worth.Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Similar to Switzerland, NL has a wealth tax but no capital gain tax. At least for CH, for most people they likely benefit from having wealth tax instead of cap gain, it's probably also good for encouraging investment as people will seek return > wealth tax rate.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
That tax replaces capital gains tax in the Netherlands, which is important context.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
I think this describes the Netherland wealth tax better (tldr, it’s more like captial gains)https://firetheboss.eu/personal-finance/dutch-wealth-tax/ …
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
In the Netherlands, ownership over 5% of a limited company is not taxed as wealth, but as capital gains in Box 2. So a founder usually has a personal LLC to hold their shares in the startup LLC. Money withdrawn from the personal LLC then falls under the wealth tax in Box 3.
-
The Dutch setup avoids your dilution concerns, but obviously also opens loopholes.
- Show replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.