They start with NW >100 million and start decreasing the concept of Ultra-Rich until everyone non-broke eventually pays it.
In Spain it happened with the Work Tax which from >60k EUR (68k USD) goes to 45% as if earning 3k EUR (3.4k USD) per month made you rich.
Maybe if they taxed NW >100 million, you wouldn’t need a 50% tax on work.
Don't be mistaken, it's an "in addition to" tax, not "instead of", or else it wouldn't be pitched as one of many ways to plug a budget hole.
The big argument around NYC's pied-à-terre tax among other policy changes was that it would force the wealthy to relocate outside of NYC to more favorable locations. That hasn't happened, and for a place like NYC, very unlikely to happen because people are attracted to the city for what it provides. Worst case, they leave, the property values decline and the city becomes more affordable with any gaps in businesses likely filled by those living and invested in the community.
Sounds worse than it is since it's progressive taxation meaning the effective tax rate for the entire 60k EUR is somewhere like ~29%, not 45.
€0 to €12,450: 19%
€12,451 to €20,200: 24%
€20,201 to €35,200: 30%
€35,201 to €60,000: 37%
Source: Gemini so it could be complete bullshit.
To be fair, VAT is heaver in Europe than for example US, so the overall tax burden might still feel more onerous.
In Spain if you earn more than 60k you are considered rich.
* There's one of 300k at 47% but even that one does not change so much as the <60k to >60k.
But taxing inheritances would still be preferred mechanism rather than taxing unrealized gains I think. That would target the EU's unproductive rent seeking heirs the best.
If it has to be done, it should be at the sources of the wealth so that they can’t be dodged. Things like property taxes, corporate taxes, taxation of stock buybacks (which is a way to pay dividends without paying income tax on them). The middle class will still be paying these, but at least the ultra wealthy will be contributing on their share of the wealth generation too.
> Taxes on wealth, crypto and financial trades could raise billions no single member state can collect alone.
The sad reality is that as soon as the EU introduces this, these families won't be Europe's Ultra Rich anymore. They'll soon be the UK/Swiss/Dubai/Israel/US Ultra Rich.
What the EU needs is:
- Less bureaucracy
- One capital market
- More venture capital
What the EU doesn't need is a larger budget. Is is really an issue if a family has a net worth north of 100 million if 90% of that is invested (directly or indirectly) in future growth of the EU?
> A financial transaction tax would not only generate additional revenue for the EU budget; it would also make short-term and speculative trading in financial markets more expensive.
This goes *directly* against the https://en.wikipedia.org/wiki/Efficient-market_hypothesis. Potentially creating more friction and less efficient capital allocation in an continent already struggling with growth and innovation.
> A tax on ultra-high wealth would have particularly high revenue potential. One possible approach would be a minimum tax for individuals with net wealth exceeding €100 million, ensuring that the taxes paid annually by this group amount to at least a specified proportion of their wealth. Such a tax would specifically target individuals whose effective tax burden is lower than that of other groups. At the same time, it could help to limit tax competition between member states for particularly wealthy residents.
The biggest competition does not from member states, rather it comes from Switzerland and the United Kingdom. Two countries where citizenship is (for most ultra-rich) a plane ride and a few administrative meetings away. USA, the middle-east and Israel offer other options, slightly further away.
Yeah, but the physical assets they own can’t move freely. The EU can still tax or seize assets within the EU.
This is true but effectively it would lower the value of those assets (since any future investor needs to account for the increased tax burden) which would also be negative for the EU.
philipallstar•42m ago