151–160 of 190 posts
The problem with the European mindset on this, is it's always involves bureaucrats taking their taxpayers money and allocating it in smarter ways than American investors who are doing it with their own money. If that seems unlikely to work to you, then you possess critical thinking. The US spends more on R&D (Private and Public) than the next 5 countries combined. Public research is and since the 70s has been a small…
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How do you think that Norway’s wealth tax could impact its ability to draw talent from any other country? Knowing that, should you develop anything (drug, material, etc) and want to spin it out to a startup, you will be taxed on the unrealized valuation would weigh very heavily on me were I a researcher. Full disclosure, I know that this isn’t everyone’s goal, but this is HN after all!
“I want to contribute to society, but if I earn more than X Millions of dollars 1% of my wealth will be taxed” I guess don’t try to contribute to society then. What you are describing isnt a hacker mentality, it’s one of an MBA graduate whose sole purpose in life is to maximize their own wealth. The idea that such a mentality is linked to this forum shows how far hacker culture has fallen and is deeply sad.
If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup.
I could be wrong also, I was curious to hear a real life Norwegian’s thought about it.
A system like this only serves entrenched interests, not entrepreneurs or workers. Want to make a life saving drug? Have to sell off ownership of your company or use runway to pay taxes on something that could be absolutely worthless in the end or wind up losing control. Better off selling to Novonordisk!
The problem with the European mindset on this, is it's always involves bureaucrats taking their taxpayers money and allocating it in smarter ways than American investors who are doing it with their own money. If that seems unlikely to work to you, then you possess critical thinking. The US spends more on R&D (Private and Public) than the next 5 countries combined. Public research is and since the 70s has been a small…
American investors prefer spending other people's money too, they just happen to capture most of the returns, and the public gets just enough dregs through their 401k or pension funds to keep the cycle going.
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> to be attractive For people who value money over everything else
My post was arguing that the "everything else" is more attractive in the US. Consider a post doc or junior professor who do not know if they will ever get a tenure position or if you even want to remain in academia their whole life. Their plan B is to get an job in industry. Now consider having access to the whole US job market vs. having access to one tiny EU country. Not to mention that when you bias for cutting ed…
Now assume they are not American citizens, and travel internationally and re-evaluate the whole proposition that "everything else" is better.
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“I want to contribute to society, but if I earn more than X Millions of dollars 1% of my wealth will be taxed” I guess don’t try to contribute to society then. What you are describing isnt a hacker mentality, it’s one of an MBA graduate whose sole purpose in life is to maximize their own wealth. The idea that such a mentality is linked to this forum shows how far hacker culture has fallen and is deeply sad.
The problem is that the wealth tax is based on your assets. 51% ownership of your $10M early stage startup is $5.1M in wealth, not a liquid asset. Nevertheless, you will owe $51k/yr to the Norwegian government. If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup. I could be wrong also, I was curious to hear a r…
Earlier quoted context omitted.
“I want to contribute to society, but if I earn more than X Millions of dollars 1% of my wealth will be taxed” I guess don’t try to contribute to society then. What you are describing isnt a hacker mentality, it’s one of an MBA graduate whose sole purpose in life is to maximize their own wealth. The idea that such a mentality is linked to this forum shows how far hacker culture has fallen and is deeply sad.
The problem is that the wealth tax is based on your assets. 51% ownership of your $10M early stage startup is $5.1M in wealth, not a liquid asset. Nevertheless, you will owe $51k/yr to the Norwegian government. If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup. I could be wrong also, I was curious to hear a r…
The Draghi Report on EU Competitiveness raised lots of these red flags and, at last, some politicians are listening. Still, too little and too late.
Earlier quoted context omitted.
The problem is that the wealth tax is based on your assets. 51% ownership of your $10M early stage startup is $5.1M in wealth, not a liquid asset. Nevertheless, you will owe $51k/yr to the Norwegian government. If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup. I could be wrong also, I was curious to hear a r…
True, Switzerland and Denmark had the same problem but they are fixing their unrealized gains tax regulations. The Draghi Report on EU Competitiveness raised lots of these red flags and, at last, some politicians are listening. Still, too little and too late.
https://commission.europa.eu/topics/eu-competitiveness/dragh...
The problem with the European mindset on this, is it's always involves bureaucrats taking their taxpayers money and allocating it in smarter ways than American investors who are doing it with their own money. If that seems unlikely to work to you, then you possess critical thinking. The US spends more on R&D (Private and Public) than the next 5 countries combined. Public research is and since the 70s has been a small…
Private companies used to understand and value this and fund relatively open-ended research arms without the requirement to deliver immediate investor value. As investors have become more and more myopic, government funding has been essential to keep foundational research alive.
As just one example, think about the Large Hadron Collider. It's pretty expensive with no immediate commercial application, no ROI focused private investor in the world would support it. But it's an essential tool for conducting research into the very foundations of physical existence with who knows what implications for human progress. I'm good with the "European mindset" approach to those kinds of problems since private investors would certain drop the ball if left up to them.
Earlier quoted context omitted.
“I want to contribute to society, but if I earn more than X Millions of dollars 1% of my wealth will be taxed” I guess don’t try to contribute to society then. What you are describing isnt a hacker mentality, it’s one of an MBA graduate whose sole purpose in life is to maximize their own wealth. The idea that such a mentality is linked to this forum shows how far hacker culture has fallen and is deeply sad.
The problem is that the wealth tax is based on your assets. 51% ownership of your $10M early stage startup is $5.1M in wealth, not a liquid asset. Nevertheless, you will owe $51k/yr to the Norwegian government. If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup. I could be wrong also, I was curious to hear a r…
It doesn't really discourage people from building their wealth and buying homes. It does a tiny bit - I've heard people say they rent to avoid property taxes. But barely.
So, if the middle class who do not have a lot of wealth can deal with it, I would imagine the wealthy can, too. Or, maybe they can't, because they have so much more mobility.
Earlier quoted context omitted.
“I want to contribute to society, but if I earn more than X Millions of dollars 1% of my wealth will be taxed” I guess don’t try to contribute to society then. What you are describing isnt a hacker mentality, it’s one of an MBA graduate whose sole purpose in life is to maximize their own wealth. The idea that such a mentality is linked to this forum shows how far hacker culture has fallen and is deeply sad.
The problem is that the wealth tax is based on your assets. 51% ownership of your $10M early stage startup is $5.1M in wealth, not a liquid asset. Nevertheless, you will owe $51k/yr to the Norwegian government. If you raise a second round at $15M, next year you owe $76k, so on. This creates an impossible situation for a founder of, let’s say, a fission reactor startup. I could be wrong also, I was curious to hear a r…
It's not normally a very large issue, but I really don't like it. Most companies on the exchange makes money, and those who are not on the exchange are taxed on their assets. So in most cases it works out, but not always.
Usually owners use dividends to withdraw money to pay the tax, but that means even more tax as you have to pay tax on the dividends too.
The right side wants to remove the tax on investments, and maybe compensate by increasing the corporate tax. That way the tax on the annual result will be a bit higher, but there will be no wealth tax. This also levels the playing ground when it comes to Norwegian and foreign investors as the tax won't be based on where the owner is from.