Let’s observe the guinea pigs in Europe.
“It doesn’t matter if you’re running a loss-making startup with no cash flow, if your investments have tanked after the valuation date, or even if your company has gone bankrupt — you still owe the tax,” he wrote. “With dividend and capital gains taxes at around 38 percent, you need to withdraw approximately 1.6 million NOK to pay a 1 million NOK wealth tax bill. You’re essentially paying taxes to pay taxes, draining capital from your business without any personal financial gain.”
From X.com link above. ^^^^^^^^^^
Here’s how insane things have gotten in Norway: The Socialist Party has a “wall of shame” in their office with “rich people who have left Norway” - due to the outrageous taxes they’re now being charged. Who do you find on that wall? Startup founders like
- who was forced to leave the country because he was paying ALL of his income (!!) in taxes. When the Soviet Union is becoming the role model of your country, time to GTFO.
My former boss, last name Kjekstad, who has family still in Norway has explained to me how the natives essentially figure out ways to avoid taxes. First off, you buy all your booze or anything “sin” related in Sweden on a monthly run. This includes beef and other meats.
You run everything on electric because it’s cheap there. Lots of Hydro power.
You smuggle anything you can into the country because otherwise, the government gets a big chunk of it first. You burn wood as much as possible for heat because the government can’t figure out how to tax it.
There are toll booths close together on most major roads. They clock you point to point. Fine you if you exceed the speed limit, which of course are artificially low.
If you own property, live up in the woods somewhere with a lot of land and have illiquid wealth that can’t be taxed? Wonderful place to live. If they can tax you until your shorts are gone? They can, will, and do.