Taxing unrealized gains has caused an entrepreneurial exodus in Norway
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Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#2easy, impose an exit tax. capital doesn't need to be free when it's trying to evade justice.
you pay tax on unrealised gains the same way the rest of us do when facing an unexpected bill that we can't afford - you sell your stuff.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#3> This creates a perverse scenario where business owners must extract dividends or sell shares every year just to cover their tax bill. With dividend and capital gains taxes at around 38%, you need to withdraw approximately 1.6 million NOK to pay a 1 million NOK wealth tax bill.
Why wouldn't you just take a loan against the assets? A few percent of interest is a lot cheaper than 38%. In Canada you used to have to pay taxes on unrealized option gains, standard procedure was to take a loan to pay taxes. If the options gains disappeared, you'd use your next years tax refund to pay back the loan.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#4easy, impose an exit tax. capital doesn't need to be free when it's trying to evade justice. you pay tax on unrealised gains the same way the rest of us do when facing an unexpected bill that we can't afford - you sell your stuff.
You do realise they were taxing the entrepreneurs before their companies made a profit? What sort of "justice" is that?
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#5easy, impose an exit tax. capital doesn't need to be free when it's trying to evade justice. you pay tax on unrealised gains the same way the rest of us do when facing an unexpected bill that we can't afford - you sell your stuff.
It's amazing to me that on a startup-oriented forum like this one you see these kinds of socialist comments when it comes to something that is harmful to startup founders and the entire ecosystem. Honestly curious to see what people who are hostile to entrepreneurship are even doing here.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#6easy, impose an exit tax. capital doesn't need to be free when it's trying to evade justice. you pay tax on unrealised gains the same way the rest of us do when facing an unexpected bill that we can't afford - you sell your stuff.
The article mentions the existence of such a tax.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#7> This creates a perverse scenario where business owners must extract dividends or sell shares every year just to cover their tax bill. With dividend and capital gains taxes at around 38%, you need to withdraw approximately 1.6 million NOK to pay a 1 million NOK wealth tax bill. Why wouldn't you just take a loan against the assets? A few percent of interest is a lot cheaper than 38%. In Canada you used to have to pay…
If they took a loan then they would have to stay and waste this perfectly good excuse to do what they wanted to do anyway.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#8Not surprising that an Atlas Shrugged reading entrepreneur dislikes taxation.
But government services cost money, and by other accounts [0] Norway are doing pretty well:
Norway performs well in many dimensions of well-being relative to other countries in the Better Life Index. Norway outperforms the average in jobs, work-life balance, education, health, environmental quality, social connections, civic engagement, safety and life satisfaction.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#9The references to Atlas Shrugged and the trains not running on time, and the bit about healthcare costs do not bolster any argument against a tax on unrealized gains, so this comes off more as ideologically motivated bit, rather than than an argument against the specific tax. Taxing unrealized gains is really problematic, as anyone in the startup scene who's been granted stock options in a rising startup in Silicon Valley can attest to. Paying a million dollars to the IRS because of AMT means you got a big payday, except for the fact that if you don't actually have a million dollars, you then have a problem. Most people don't have a million dollars to begin with so you can't pay that bill and you take a loan from sketchy loan shark, whole repeating the mantra, 100% of $0 is $0. 70% of a big number is still a big number.
Looking at the US, rasing taxes on the rich and doing more against unrealized gains won't happen for at least four years, so we don't have to worry about that, at least.
Re: Taxing unrealized gains has caused an entrepreneurial exodus in Norway
#10easy, impose an exit tax. capital doesn't need to be free when it's trying to evade justice. you pay tax on unrealised gains the same way the rest of us do when facing an unexpected bill that we can't afford - you sell your stuff.
It's amazing to me that on a startup-oriented forum like this one you see these kinds of socialist comments when it comes to something that is harmful to startup founders and the entire ecosystem. Honestly curious to see what people who are hostile to entrepreneurship are even doing here.
It’s amazing to me that people think this is what socialism is. This isn’t seizing the means of production.