How to have a billion dollar exit with zero capital gains tax

Re:How to have a billion dollar exit with zero capital gains... by fifticon on Tuesday May 10, 2022 @05:38AM (#31325160)

given that they often precisely pay less taxes than you, you can't really avoid wanting them to pay "higher" taxes - higher than the ridiculously low numbers they pay, given their army of lawyers, accountants and loopholes. So, wanting them to pay a similar percentage to you, DOES amount to them paying "higher" taxes.

  In my country, foreign (or rather, multinational) corporations  that invariably make huge profits, pay zero taxes, by doing the following:
  - they transfer 'ownership' of critical company resources,

e.g. the software WE develop, to a remote entity that is also them, typically on e.g. cayman islands. Then our local subsidiaries rent/lease OUR OWN SOFTWARE back from the cayman part, in order to serve it to our clients. Our local subsidiaries pay a silly huge leasing fee for using "its own software" - as much or more than what our clients pay for using the software services. The net result is, that our local subsidiaries always operate with a loss, no profits, which both results in no taxes having to be paid, and the "losses" being tax deductible (depending on details, both can be useful). The real net result is, that a huge profit is funnelled out of our countries, with no taxes paid for local services, wear and tear.

When your size allows you to hold the pen when writing the tax laws, tax does not apply to you.

Tax is something the wealthy and society extracts from the taxable classes. They don't extract it from the rich, it is in direct opposition to the nature of being rich - rich is something you become, by being exempt from the rules that apply to 'lesser' creatures.

And if the low-income classes do not provide taxable income, I wonder why the republicans are so hellbent from prohibiting poor people from getting abortions. It suggests to me, they DO believe poor people serve some purpose, given that they insist on creation of new poor people.

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Re:How to have a billion dollar exit with zero capital gains... by ajsnigrutin on Tuesday May 10, 2022 @06:00AM (#31325280)

I edited my post and added the "(as in higher tax percentages)", because this is the main thing that our left-leaning parties do.

We had a really shitty government for two years now, who did only one good thing, and that was to raise the general tax deduction, making our workers get a bit more net out of their gross income, and even the unions protested, because they "cared" about te governments budgets.

Now with the government change, we expect them to scrape that (because that would mean more money for the government, and the poor (their voters) would be least affected), and the paroles they'll use go along "taxing the rich". On the other hand, as you said, if you're rich, the "progressive" tax rates make it worth it to avoid taxes by funneling money around, and we (engineers, developers, etc.) get fucked, because we earn above average (and get hit with taxes hard), but still not enough to make it worthwile to do the whole tax-avoidance (legal) thing.

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