3 points
The NL system which has been working for a while works by saying:
We don’t care about your capital gains, you’d just try to game the system, we’ll pretend you invest everything into a relatively safe bond scheme, and tax your capital income based on that. Meaning we tax wealth as if it was guaranteed income at 4% interest per year. If you gamble and lose, tough break, you still owe the same taxes, as you are bearing the risk on investments, not us.
1 point
Most state bonds are quite a bit lower than 4%, and even business bonds (I take bonds in some football clubs as a reference, because they tend to do quite prominent ads on them) only do 5-6%.
2 points
