I think you are right Toofuzzy!
OK, Maybe on the $ 50 gain in The Netherlands this would not be the same . . .at least not for investors with little Capital. Perhaps it may not even be considered Income as I claimed it was.
The other buys the fund from the first taxpayer for $100 and the stock distributes a $50 capital gain and drops to $50 (or $49 or $51 whatever) . So now that I think about this, it doesn't sound fair. The government has got its tax twice!
So, you mean that the gain distribution (dividend as I understand it) does not constitute an Investment Gain. . .Equity Yield remains constant at 50+50 = 100, but you pay taxes on the $50 pay-out and then when the investment returns to $ 100 you will be taxed again if the $ 50 gain is paid out. That was the scenario that I understood from the Experience of Dr. X in the Reference Link.
My question here is this: "Does this happen like that to investors that invest only $ 100 and that have a Capital of only $100 in their bank account?
If that only happens to rich people the n I do not think it is unfair. . . .The Tax Load should bear down on the Rich more so than on the Poor, that I consider fair. . .where you draw the lines in the sand on this is a debatable issue for every case.
In The Netherlands the income tax rate on the poor (above the Tax Free Base) increases from 35% to 37% in 2013, BUT other compensations for the poor . . .(like I am) . . .are rising. . . they will lose only a little overall on income but Medical Insurance cost is rising significantly!!! A lot of poor people think that is unfair and the complain loudly about it! I an not complaining. . . I just suffer my fate J
To turn the Crisis Tide the Middle Class will face lots of extra income loses because of the higher taxes up to 52% + they get less income deductions so they taxable income goes higher. . they complain so much here that one would think that The Netherlands is one huge Wailing Wall.
Fairness is a mostly a matter of perspective.
Our Majority Coalition Government is convinced that it is as Fair as The Tooth Fairy is.
