The Soapbox

BocaHoo91

Joined: 06/03/2005 Posts: 31264
Likes: 52951


Maybe not for existing rich people, but it would


certainly make the US a far less attractive place for attracting future capital.

Plus there are unintended consequences other than that. A good friend started a company that is now worth over a billion dollars. I’m not sure his exact stake in the company, but he’s WAY above the $50 million threshold. But he still lives in my neighborhood, partly because he and his wife are naturally modest people, but more importantly, because much of his wealth is still on just paper (although the company has hundreds of millions of recurring revenue and thousands of employees…. So it’s legit paper wealth). Putting aside the difficulty in valuing his share in a private company — let’s assume it’s $500m — if you were to tax him at 2% of everything above $50m, he’d need to come up with $9m a year….. every year. He doesn’t have that type of cash flow so he’d be forced to sell more and more of a stake in the company he started. I consider this fundamentally wrong, although I would love to have that problem.

(In response to this post by TomGlansAski)

Posted: 01/19/2023 at 11:13AM



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Current Thread:
  WGAF? ** -- Seattle .Hoo 01/19/2023 1:25PM
  That's the underlying point of the criticism. -- Shenhoo 01/19/2023 11:51AM
  Pic -- ryno hoo 01/19/2023 10:29AM
  🦗 🦗 🦗 ** -- TomGlansAski 01/19/2023 12:00PM
  Agree - your post was pretty clear, Glans. ** -- ResistHoo 01/19/2023 10:53AM
  Oooh, sick burn Resist! ** -- TomGlansAski 01/19/2023 10:58AM
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  I don't see Glans ever doing this either. ** -- ResistHoo 01/19/2023 12:46PM
  Sandwich artist, heal theyself. ** -- ResistHoo 01/19/2023 11:07AM

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