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

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

#111
post #68

Unfashionable thought: pay your damn taxes. Loopholes are one thing and IMO should be closed but morality is another. The whole idea that you can make a billion dollar business without being hugely dependent on the infrastructure, education, history, societal background etc that has largely been paid for by...taxes...is utter fallacy. Maybe if massively profitable businesses spent a bit more time doing the right thin…

Honest to god, I'm kind of stunned by the people with tens to HUNDREDS of millions, liquid, that will go great lengths to avoid, even evade, taxes. You see people move to other countries for "tax purposes" alone. Or people that will create elaborate schemes.

Of course, I understand that if you're in that wealth bracket, the actual tax/accounting acrobatics is abstracted from you. You probably hire some consultant to do all the work, and in the day only pay a fee to get your tax cut by x.xx%. That's zero work for you, minus whatever time you spent on a meeting with the consultant.

But still, there are people that will be heavily involved in these things themselves.

Yes, it is a polarizing topic. Some people refuse to pay taxes because of how the money is spent - or they have some idea of how the money is spent. But from a pragmatic point of view...what's the difference between sitting on say $500MM in cash, and $800MM? It's either way going to be more money than you'll ever be able to spend. Hell, even the safest investments at that scale will yield more money than what most CEOs make in a year.

(With that said, I do have sympathy for the people living in countries where you have to pay wealth tax or tax on unrealized gains, which for founders means

1) taking out loans to pay taxes

2) increasing their yearly compensation, just to meet their tax burden or

3) to sell their equity

But these aren't really in the "exit" bracket)

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

#112
post #68

Unfashionable thought: pay your damn taxes. Loopholes are one thing and IMO should be closed but morality is another. The whole idea that you can make a billion dollar business without being hugely dependent on the infrastructure, education, history, societal background etc that has largely been paid for by...taxes...is utter fallacy. Maybe if massively profitable businesses spent a bit more time doing the right thin…

I have an idea. I'll pay my damn taxes if you'll pay back your government-sponsored student loan. Deal?

This is such a common error in judgement, but I don't really know its name. Does anyone know? I'm genuinely curious.

I'm referring to the "I'll do X when others do Y" type of reasoning.

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

#113

Earlier quoted context omitted.

This only applies to the upper middle class not the insanely rich though. Anyone who hires a tax attorney is not paying high taxes in this country.

That's just not true. The top 1% pay 33% of the tax (and the top 10%, "upper middle class", pay 70%). I think myth just causes confusion and misplaced anger.

Yes, but these stats obviously take into account only paid taxes and wealth that remains visible. If you have 50 bn$, of which 1 is kept and taxed locally, and 49 moved through shell companies to offshore tax heavens, you'll still end up as one of the top tax payers, even if you are evading about ~5000%. Obviously this is much harder to do if you earn 200k/year.

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

#114
post #75
post #72

Earlier quoted context omitted.

This is HN. we welcome diversity of views. this view you espouse, is not actually a minority view, but still, its a divisive topic. I'm a high tax kinda guy. If we all had Norway taxes, we'd have Norway sovereign fund and EV and lifestyle (but maybe without SAD, because we're not all that far north)

Norway oil is way more relevant for your thesis than Norway taxes

Yea right, so is the German oil for Germany. /s

You seem to be quite the expert on Norway. Can you elaborate how they prop up social services with oil money?

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

#115
post #68

Unfashionable thought: pay your damn taxes. Loopholes are one thing and IMO should be closed but morality is another. The whole idea that you can make a billion dollar business without being hugely dependent on the infrastructure, education, history, societal background etc that has largely been paid for by...taxes...is utter fallacy. Maybe if massively profitable businesses spent a bit more time doing the right thin…

When people pay their taxes, they pay for politicians to come up with more ridiculous schemes like this, and more civil servants to administrate them forever.

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

#116
post #114
post #75

Earlier quoted context omitted.

Norway oil is way more relevant for your thesis than Norway taxes

Yea right, so is the German oil for Germany. /s You seem to be quite the expert on Norway. Can you elaborate how they prop up social services with oil money?

I believe the parent comment is referring to this:

https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Nor...

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

#117
post #112

Earlier quoted context omitted.

I have an idea. I'll pay my damn taxes if you'll pay back your government-sponsored student loan. Deal?

This is such a common error in judgement, but I don't really know its name. Does anyone know? I'm genuinely curious. I'm referring to the "I'll do X when others do Y" type of reasoning.

> Does anyone know?

Sounds a bit like whataboutism.

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

#118
post #114
post #75

Earlier quoted context omitted.

Norway oil is way more relevant for your thesis than Norway taxes

Yea right, so is the German oil for Germany. /s You seem to be quite the expert on Norway. Can you elaborate how they prop up social services with oil money?

Lol, don't speak about high taxes if you don't even know how Norway and oil go together...

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

#120
post #114

Earlier quoted context omitted.

Yea right, so is the German oil for Germany. /s You seem to be quite the expert on Norway. Can you elaborate how they prop up social services with oil money?

Lol, don't speak about high taxes if you don't even know how Norway and oil go together...

lol not like the us could do the same.
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