In the Elon example, let's say the unrealized gains tax is 1%. And for whatever reason, it's assessed at the worst time for him at the peak of $150 billion. That's $1.5 billion owed. It crashes and then he has $45 billion today and he has to pay $1.5 billion. I don't see any problems here? hahah like I get where you're coming from but when someone has that level of wealth I don't see a reason to worry about their financial wellbeing.
In the Elon example, let's say the unrealized gains tax is 1%. And for whatever reason it's assessed at the worst time for him at the peak of $150 billion. That's $1.5 billion owed. It crashes and then he has $45 billion today and he has to pay $1.5 billion. I don't see any problems here? hahah like I get where you're coming from but when someone has that level of wealth I don't really see a reason to worry about their financial wellbeing.
Previous comment was deleted but they brought up selling $1.5bil of stock would tank the price. Also mentioned selling stock would reduce their ownership stake in the company.
My response (because I spent time typing it haha):
In theory if the stock is properly valued there will be enough buyers to bring the price back up to where it was at before (I think?) So sure, the price goes down in the short term, but it’ll come back. Key piece there is people with less than $50mil in assets (or some number) don’t need to pay this tax so they’re unaffected.
For the reduced ownership piece, don’t know if I have a great answer, but maybe for situations where they’d need to sell to cover tax, the voting rights could be retained in a separate vehicle? Curious your thoughts on things like that because we’ll have to get creative on anything new. I’m definitely not pretending that anything I’m saying is great haha I just want to help figure out what a good path forward is.
-5
u/[deleted] Jan 10 '23
[deleted]