New Dutch Tax Law Revolutionizes Capital Income Taxation for Equity.
The Dutch Parliament has changed the income tax system to focus on taxing wealth instead of capital income. Different methods were compared, but none were perfect. The best way to tax capital income effectively and fairly is to use a mix of taxes: one for easy-to-value financial products, one for hard-to-value real estate and small businesses, and a broad tax on wealth. This approach suggests using moderate tax rates separately for capital income and labor income.