The expected return part is the main tax on billionaires. With capital gain you can hold on forever and never get taxed, and if you die you completely skip capital gains tax with inheritance. Effective tax rate is near zero. This trick obviously only works for people who don’t need their invested money, buy and never ever sell.

Compare that to NL’s tax. Invested? You pay 6.17% x 32% = 1.97% on your investment account, immediately, no deferral possible, year after year. And the rate went up to 36% in 2024 to reduce passive income’s rate advantage over income from work.