Norway’s plan to expand its exit tax on capital gains is facing criticism from entrepreneurs who fear it will drive out wealthy individuals and hinder economic diversification. The government argues that the measure is needed to prevent tax avoidance and promote equity, but opponents claim it could have detrimental effects on investment and innovation.
Political economist Gautam Sen has warned against implementing a wealth tax in India, citing concerns that it could drive the country’s richest individuals to relocate their businesses to tax-friendly destinations such as Dubai. Sen suggests that such a tax could result in a substantial loss of wealth for India. He also questions the practicality of imposing such a tax in India, given the challenges in surveying all households and businesses. Additionally, Sen expresses concerns that such a tax could lead to social and political chaos and make India vulnerable to foreign intervention. Despite these concerns, Sen remains optimistic about India’s prospects, highlighting the country’s status as the fastest-growing major economy in the world and the government’s infrastructure investments.
Former North Dakota Senator Heidi Heitkamp has expressed skepticism about the Biden administration’s proposed 44% capital gains tax. The proposal aims to raise the long-term capital gains and qualified dividends rates to 37% for taxpayers with taxable income above $1 million. However, Heitkamp believes the proposal has no chance of passing. The Biden administration has been pushing for higher taxes on the ultra-rich, but the proposal has been met with mixed reactions.
India, historically, had an inheritance tax system prevalent before 1985. Enacted under the Estate Duty Act of 1953, it aimed to address economic inequality and was designed progressively, with rates reaching up to 85% for estates valued over Rs 20 lakh. However, facing criticism for complexity, litigation, and concerns about double taxation, the estate duty was abolished in 1985. Currently, India does not have an inheritance tax system, and assets inherited through inheritance or a will are not subject to gift tax.
The crypto community has been abuzz with rumors regarding a proposed 1% wealth tax on substantial Bitcoin (BTC) holders. However, the proposal, highlighted in a letter shared with President Joe Biden, remains unverified. If such a policy were to be implemented, individuals and corporations holding crypto assets over $1,000 would be obligated to report their holdings annually to the Internal Revenue Service (IRS). Additionally, a 1% wealth tax would be levied on entities possessing digital assets exceeding $500,000. While some speculate that this tax could be a regulatory measure or an attempt to mitigate market manipulation by large crypto holders, the bill’s primary goal is reportedly to address wealth disparities in the United States. It’s essential to note that this bill is not officially confirmed and has been dismissed as false. Understanding crypto tax in U.S.: The Biden administration previously proposed a tax increase, including raising the capital gains tax rate to 43.4% for those earning over $1 million. This proposal sparked controversy and faced criticism from venture capital investors like Tim Draper, who raised concerns about its potential negative impact on the economy.
