capital Gains Tax and Loss Compensation: A Contradiction in De wever’s Government?
The introduction of a capital gains tax has sparked significant debate, particularly around the issue of loss compensation. Economist Van de Cloot argues that while profits are taxed, losses should also yield a form of tax reduction. “If you talk about a capital gains tax, it must also be possible to settle losses. If you make a profit, you will be taxed. But if you make losses, they should actually yield a kind of tax reduction,” he explains.
Though, the current framework includes a clause of non-transferability, which Van de Cloot criticizes as impractical. “If you make large investments and suffer market losses, you will never be able to settle them in one year, because your income is too small for that. That is why losses must be transferred. then you can take that with you for five years,” he elaborates.
This approach contrasts sharply with the handling of losses during the banking crisis, where banks were allowed to settle losses over several years. “But now it is said that losses may be settled, but there is no transferability. Then you really can’t do anything with that,” Van de Cloot adds.The De Wever government has been labeled a “government of contradictions” by Van de Cloot.“People want risk capital and they want entrepreneurship. But at the same time, people are going to introduce a capital gains tax,” he observes.
Meanwhile, MR chairman Georges-Louis Bouchez announced he woudl not join the government, citing the need to ensure the stability of his party. “I would have chosen to board this government, but my choice was determined by the stability of the MR,” he stated.
The new government also sees key appointments, including david Clarinval as Deputy Prime Minister and Minister of Work and Economy, and Bernard Quintin as Minister of the Interior. Additionally, Mathieu Bihet and Eléonore Simonet join as Minister of Energy and Minister of Middle Class and Agriculture, respectively.
| Key points | Details |
|—————-|————-|
| Capital Gains Tax | Profits taxed, but loss compensation debated |
| Non-Transferability Clause | Losses cannot be carried forward, limiting tax benefits |
| Van de Cloot’s Critique | calls for a five-year loss transfer mechanism |
| Government Contradictions | Encourages entrepreneurship while introducing capital gains tax |
| MR’s Decision | Bouchez opts out to ensure party stability |
For more insights into the De Wever government’s policies, explore the full details of their coalition agreement and its potential impact on your finances.
This article highlights the complexities of the capital gains tax debate, offering a fresh perspective on its implications for investors and entrepreneurs alike.
