RE: The Epstein Files: A Rare Glimpse Behind The Curtain
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Happy Valentine's Day, @ericvancewalton.
I'm trying to understand the rationale behind the Netherlands unrealized tax reform. I looked up some information (I know nothing about the economy of the Netherlands). Apparently taxes on income are higher, overall, than we are assessed in the U.S.:
The Netherlands taxes its residents on worldwide income, dividing it into three separate schedules, or “boxes,” each with its own rules and rates.
Box 1 covers taxable income from employment and home ownership. For 2026, the first €38,883 of income in this bracket is taxed at 8.10% (with national insurance contributions at 27.65% within that bracket). Income between €38,883 and €78,426 is taxed at 37.56%, and anything above €78,426 is taxed at 49.50%.
Some have asserted that wealth inequality in that country has increased over the last several years (not income inequality). One of the ways to address that is to tax unrealized assets before a person dies. Otherwise, the assets continue to grow, without taxation during a person's lifetime and then gets passed on, tax-free, to heirs. This, it is contended contributes to the increased wealth inequality. The government will never recoup those lost gains.
On the other hand, taxing unrealized gains, particularly in crypto, could lead to a liquidity issue. Investors will be required to pay money they have not actually received. If they don't have cash on hand, they have to liquidate assets.
It's complicated, isn't it? I think of that adage about unintended consequences. No way to tell how this will actually work out for the taxpayer and for the society until it is enacted. They say that in the Netherlands there is customarily a five-year look back period to asses the effect of such a law. In this case, it's a three-year look back. There is obviously an awareness that this law may have more negative than positive effects.
You can see I found this very interesting. I sort of jumped down a rabbit hole looking into it.
@topcomment
Thank you! I hope your day was wonderful!
The Netherlands did pay more taxes, on average, than the US before this latest "Box 3" proposal but they received a lot more in return that we do (a much better social safety net). We talked with a lot of Dutch citizens during our visits between 2016-2019 and their system seemed fairly balanced. This latest round of changes though is more like confiscation of wealth to pay for recent waves of heavy immigration. It likely won't hurt the ultra rich as much as it will people trying to build wealth and businesses. It'll probably spark a wave of nationalism similar to what's happening in Britain now with the Restore Britain party.
I'm glad it sparked your interest! It's so strange that I haven't heard one peep about this in the news. Thank you for your comment and I hope you enjoy the rest of your weekend. We're getting a brief thaw here in Minnesota but will be cooling off again this week. The 50's have been like a Godsend!
Ahh, immigration. You know that saying about sins of the fathers? I think today Europe is paying for the sins their colonial forebears. In 1888 there was a conference in Berlin where the Europeans essentially carved up Africa. They took whatever they could from the continent in any way they could. Today all those conquered peoples are looking to reverse the trend.
Also, there seems to be a vested interest in the powers that be to increase cheap labor, to flood their countries with young immigrants to compensate for the low birth rates of their own people. It does seem to be a plan, doesn't it? A plan they are imposing on the people in their country. Now, with the EU as a unified entity, the people have even less say.
I've no idea how this is going to sort out. The tax policy seems to be one consequence. Election of so-called right-wing, nationalist parties is another. In response, what do European governments do? Pass laws prohibiting 'hate speech'...free speech.
Immigration may be the issue of our time, the one thing that breaks the social order (am I engaging in hyperbole here? 😄 )
I think the low birth rates across the Western world play a huge factor in this mass migration. Countries need workers and a tax base (at least for a few more years). I'm unsure how it will all unfold also. I think we'll likely see more nationalism as people rebel against their culture being erased and rewritten.