alt Hacker News> The capital growth tax will apply to most assets, taxing both realised and unrealised returns, including appreciation in value and income from assets like shares, cryptocurrencies, and savings. Exchange results on bank balances in currencies other than EUR will also be taxed.
Ouch. I suppose this is supposed to combat the trend of share buybacks over dividends. Gonna seriously suck to be anyone Norwegian and having to sell stocks to pay for taxes on your unrealized gains.
Also if the euro dives as well during inflation its gonna be painful.
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Seems like it would also result in capital investors covering more year-to-year tax revenue, which could reduce some pressure on other tax payers.
In theory, capital gains should average out over time. But in practice, I think an increasing amount of wealth is being held and not realized over many decades.
It doesn’t help anyone that a few billion $ of gains will be taxed eventually if that is so far into the future that most citizens alive today will have passed away by then.
Housing?
This won’t obviously apply to Norwegians, as it’s for the Netherlands.