FinTechDirect

The Netherlands is about to commit financial self-destruction. Their parliament just passed a 36% tax on unrealized gains for investments. This will cause wealthy people to move to another tax jurisdiction. People will avoid launching a new business. Stock market investing will dry up. There is too much downside risk, very little upside potential. The govt is confiscating most of the potential upside, but leaving the investor with the downside risk. The politicians know this, they have discussed it and they are concerned about it. But they did it anyways to close a short term budget gap of roughly $2 billion. As with other countries that attempted a wealth tax, it will likely backfire and result in less tax collected after wealthy people leave. The results will be so negative, the govt will reverse course within a few years. But by then the damage is already done.