The Dutch government is destroying long term compounding by introducing a 36% tax on unrealized gains.
As a Dutch citizen and long term investor, I’m at a loss for words about the lack of vision behind this new tax. I normally don’t post anything politically related, but what our government is planning to do is disastrous for long term investors.
This is the sad truth.
Most people here start investing to protect themselves against inflation and ever rising pension ages. They’re trying to put hard earned money to work, hoping they can retire before the age of 71. And they had a real shot at that before this bill.
If you started at 25 with €10,000 and contributed €1,000 every month, you could compound to €3,320,000 over 40 years. If you lived prudently, you could retire early and live off it for the rest of your life.
With the new capital tax? After 40 years of compounding, you’d end up at €1,885,000. That’s a €1,435,000 difference.
This tax denies generations the chance of early retirement, punishes those who take risks, and introduces severe liquidity issues for people who have been compounding successfully for years. And to what end? To fill a €2.4 billion tax hole.
I’m beyond words.
If you’re Dutch like me, please share this visual with fellow investors to increase awareness.
Hopefully we can make our politicians understand the severity of this tax, and the breadth and depth of its destructive implications.
~ Jan
🇳🇱 For my Dutch followers:
Jij werkt hard. Je spaart. Je neemt verantwoordelijkheid.
En de overheid? Die pakt vervolgens op een onredelijke manier af wat van jou is.
Teken de petitie. Deel dit bericht. Laat zien dat je er genoeg van hebt.
https://t.co/23CWTWgF9p
BREAKING 🚨: Diamonds
Diamonds may be a girl's best friend but they're your portfolio's worst nightmare. Prices have fallen to their lowest level this century!
@saifedean Who told you that he quadrupled the money supply? I think you did not understand what he is doing. Inflation is going down and growth is increasing.
@YusufTMacro The NEWS about Milei in the MEDIA is wrong. Milei is doing everything what he told. Inflation rate get down from 20% to 2%, economic recovery, from -1% last gov to 6% expansion. the risk in ARG is the last gov, they have majority deputies/senators.
@Mia49977468@factor_members AI will help people to work better and replace some jobs that can be done with robots. New jobs for people will be created. There is no way that AI replace all the people. The media is pushing fear on people but the economy works because people and gov spend money. No work no eco
@glengoodman@factor_members Before a long retracement we always see BLTHS going down and and pick in BTC prices, but this time is different, there is not pick in price and the BLTHS are not so deep.
This week in markets: A central bank bonanza featuring the #FOMC (FedWatch: ~95% for 25bps cut, ~5% for 50bps cut)
Mon: T-Bill Auctions ($155B)
Tue: Canada Inflation
Wed: Bank of Canada Rate Decision, Fed Rate Decision
Thu: Bank of England Rate Decision
Fri: Japan Rate Decision