> If you have say 4 million USD and invest in stocks expecting say 7% per year you will pay 103k USD in cap gain tax and then 44k in wealth tax for a grand total of almost 150k/year.
That’s only on realised gains, surely?
And if that’s the case, it’s likely cheaper than having worked for that income.
Realizing every year vs realizing at the end produces about 1% annualized return difference with those rates over 10 years. It's sure significant but not huge. In practice you are likely to be somewhere in the middle.
>>And if that’s the case, it’s likely cheaper than having worked for that income.
How is that relevant? You are investing money already heavily taxed as income before. Anyway, I am just pointing out it makes a significant difference for someone who struck a bit of gold and gained financial independence but is not yet rich.
That’s only on realised gains, surely?
And if that’s the case, it’s likely cheaper than having worked for that income.