Re:Sweeping Reform Would Tax Capital Gains Like Ordinary Income
by burlesona on Sunday April 07, 2019 @12:05PM
(#19597658)
I’m not endorsing the idea, but just thinking about how it would play out...
I suspect that for the reasons you just gave, you’d see a quick transition in the marketplace where companies stopped paying high-end roles largely via stock, and founders like Bezos greatly reduced their personal holdings.
If they’re trying to target only the top 0.1% it would probably have some floor like the first $1M per year that is exempt.
But yeah this would seem like it would very much punish concentrated ownership of large companies.
In reality though it would probably ha e some stupid loophole like it only applies to individuals so then people could avoid it by transferring their stock to intermediate LLCs or something.
I suspect that for the reasons you just gave, you’d see a quick transition in the marketplace where companies stopped paying high-end roles largely via stock, and founders like Bezos greatly reduced their personal holdings.
If they’re trying to target only the top 0.1% it would probably have some floor like the first $1M per year that is exempt.
But yeah this would seem like it would very much punish concentrated ownership of large companies.
In reality though it would probably ha e some stupid loophole like it only applies to individuals so then people could avoid it by transferring their stock to intermediate LLCs or something.