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by ceejayoz 1592 days ago
> And yet it doesn't happen

Sure it does. Quite a few European countries have a top tax bracket in the 50% range. Denmark's capital gains rate is 42%, more than double what Bezos pays here.

2 comments

That's because capital gains in Denmark aren't really capital gains, they just tax it as income.

Short-term capital gains in the US are also taxed according to income tax rates, so 37% for the top bracket, which isn't far off 42%.

I can guarantee you Bezos is ensuring his Amazon shares aren't selling as short-term capital gains.
Indeed. But it is not clear to me that Denmark's system of not distinguishing between the two is better than the US system of allowing long-term investments to incur less of a tax burden than short-term speculative gains.
Have a guess why Jeff Bezos hasn't decided to move to Denmark.
I suspect the US could raise capital gains tax fairly substantially before it made sense for Bezos to move himself, his assets, and his company out of the US.
Maybe you're right. Maybe not. I don't know. I have somewhat the opposite opinion though — I believe people in his position have all manner of resources to facilitate the movement of assets.
> I believe people in his position have all manner of resources to facilitate the movement of assets.

Sure... and yet, Bezos hasn't moved his assets somewhere with zero capital gains tax, like Switzerland. There are clearly benefits to being in the US that are worth the 20% tax rate to him. I think a lot of them would still be present if it were 30-40%.