Netherlands drops wealth tax plans amid exodus fears

The Dutch government has abandoned plans for a controversial wealth tax, opting instead for a capital gains levy from 2028. The government scrapped the idea of taxing any increase in the value of investments, even if not sold, after concerns it could cause investors to leave the country. The move was criticized by former Wall Street executive Andrew Lokenauth, who called it "insane," and Elon Musk liked a post that mocked the scheme.

An online petition against the plan garnered 50,000 signatures in a week. The government's decision comes after years of legal battles and uncertainty over their approach to taxing wealth. The proposed change would apply a 36% tax rate on investment gains when they are cashed in. The government aims to strengthen the investment climate by drawing more wealth under the capital gains tax. The amendment must be approved by the upper house of the Dutch parliament by the end of the year.