In an article in the NRC, two Erasmus School of Economics professors, Sijbren Cnossen & Bas Jacobs, argue that the Dutch taxation system should look at reform of wealth taxation. They propose to do so by taxing capital gains, rather than taxing wealth.
Many Dutch leftist political parties want to tax the wealth of the "rich" more severely compared to those with less capital. Cnossen & Jacobs say that while this policy is made with the best of intentions, it will change little, as the wealthy will find ways to have their wealth taxed as little as possible. Tax evasion by taking advantage of the lack of tax on capital gains. If the Dutch governments does decide to tax these capital gains, they will avoid further tax evasion and hopefully receive billions more.
Read the full article here.
