The Dutch Government (Netherlands), which brought the controversial 36% tax on unrealized gains on Feb 13, is forced to reconsider its decision after massive protests.
The Tax Minister, Eugène Heijnen, pledges to rethink the draft of the law.
The taxes on unrealized gains apply to cryptocurrency, stocks, bonds, and other assets and were to take effect in 2028.
Taxation on unrealized gains has been tricky in the past because, unlike realized gains, they aren’t fixed.
A previous law on “assumed returns was deemed unconstitutional by the Dutch Supreme Court.
Source: https://bfmtimes.com/netherlands-to-rethink-36-tax-on-unrealized-gains/
Netherlands Forced to Rethink 36% Tax on Unrealized Gains after Massive Criticism
byu/chartsguru inCryptoCurrency
25 Comments
Taxes on unrealized gains are insane. If I invest $100,000, and it goes up to $200,000, and I am forced to pay taxes on those unrealized gains, and then it crashes to $0, then I’m out the original $100,000, lost out on any gains, and had to shell out taxes on non-existent money.
Good. The housing market in the Netherlands is absolutely f*cked, for anyone with a normal income investing is basically the only realistic way to build up enough wealth to eventually buy a house.
Taxing unrealized gains is so extremely dumb. The rich would just find loopholes to get around it while normal people take the full blow.
Wait so a govenment can rethink something they proposed and was widely criticised and protested instead of not giving a shit what the constituents that voted them in think, and just doing it anyway because they are lining their own pockets instead of putting the ppl first? That doesnt seem right… 🤔
I don’t see how an unrealized gains tax is anything except straight up theft.
That’s just saying “Oh you have assets that you haven’t sold? Ok, let me help myself to your bank account. Thanks!”
All I know is that people on reddit kept arguing with me and saying that this was an amazing idea. That it was the best way to get money back into the economy and that stock price doesn’t affect the company.
Not surprising. This is about rich people too, so that’s why there’s action. Poor people could protest all they want.
I hope they don’t accept this outrageous robbery.
They should give tax back for unrealised losses too
Don’t know how this idea ever got that far to begin with. How on earth can normal folks pay taxes on unrealized gains? It’s unrealized! Do they think people just have piles of cash lying around for something like that?
This was a braindead move based on an unhealthy obsession with wealthy individuals.
This in the EU where anyone can leave one country and go to another.
Every wealthy person would immediately move. Tax base would crater. How did they convince themselves that this was a way to raise revenue?
taxing unrealized gains is actually the worst idea ever. you could literally go bankrupt just because the market decided to pump then dump before tax day
Ofc it needs to change. that taxation is insane and no human should even think about it.
That was an insane proposal
Even as a retail investor this is incredibly stupid. Imagine I had to sell 36% of the profit on my pension each tax year. Literally the most idiotic practical implementation I think I’ve ever witnessed.
Politics aside the reality is that the maths don’t make it viable Eugène Heijnen, as you should have been told.
For me the more worrying aspect is that the change to tax law must have passed through several stages to reach where it is now.
At no stage did anyone say that this is peak idiocy.
Not shit sherlock? So they’re not completely fucking delusional? Good!
Just because it’s fucking stupid?
Taxing unrealized gains is controversial and difficult to implement fairly
Taxing unrealized gains is controversial and difficult to implement fairly
How is the law structured? Is it if your asset rises 100% you immediately owe taxes on the 100% gain? Or is it if you bought an asset, it appreciated, and then you took a loan for that asset using the appreciated value? Like Elon Musk taking loans using his Tesla stock as collateral based on its appreciated valued of $400 versus when he acquired it at $100.
The solution is so so simple it’s crazy. If you use your stock/crypto value as an asset for a loan that should create a taxable event. Everyone else who has not sold or leveraged their assets should not be subject to an unrealized gain tax.
Tax on unrealized gains is an insane concept
Imagine if a country with a significant global population like the US did this it would cause mass sell-off and everyone would end up losing money lol
It’s good to see that even the Netherlands fucks up. What an incredibly dumb idea. It backfired spectacularly.