• Pacattack57@lemmy.world
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    4 months ago

    Buddy as soon as they give money to a private start up it wouldn’t be unrealized gains. You can’t give stocks to a startup. Even if you could they would count as income for the business and would be taxed. And even if they went through the regular fuckery of business tax loopholes, they would have stimulated the economy through spending so it’s a win win.

    • ArchRecord@lemm.ee
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      4 months ago

      I was mostly thinking of this on a continuous basis.

      This tax would be assessed continuously, but it would only be assessed once as an income tax for the business. Then, the business is not considered an individual anymore, and doesn’t fall under these new tax rules, meaning any investments would no longer have an ongoing tax on unrealized gains, only once realized. Any of these wealthy people could start a new, privately held LLC as a holding entity.

      I’m not saying this proposal is bad in any way, I’m certainly in favor of it. I just think it has some problems that could lead to tax loophole fuckery that might reduce the income it’s expected to bring in.