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

axiomalpha.com

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

#221

Post by nobodyandproud »

imgabe wrote: post #54
nobodyandproud wrote: post #33

Earlier quoted context omitted.

Most of us don’t lobby the government to write laws that carve out near-zero tax burdens. Which, with the growing wealth inequality, explains that why the tax burden on the middle income keeps stable or grows; while services and benefits keep shrinking.

Tax returns with AGI over $200k represent 5.7% of returns filed and account for 61.7% of taxes paid. [1] What ratio would you consider fair? [1] Data is from 2019, the latest available from the IRS: https://www.irs.gov/statistics/soi-tax-stats-individual-stat...

For starters, how about paying at least the capital gains rate?

For large businesses, they’re finding ways to pay less than 20%.

But tabulate all of the ongoing costs to build and maintain our national infrastructure, legal system (no business without the courts), law enforcement branches, etc.

Deduct the income taxes currently levied on wage earners.

Roughly, the rest of the money needs to come from corporate taxes and capital gains.

That’s not what’s happening though. Instead, it’s quite alright to double tax middle income earners.

If you recall, property tax deductions were capped and so overnight the Republican government found a way to increase the average earners’s budget. Mortgage interest deductions are next.

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

#222

Post by lnxg33k1 »

whywhywhywhy wrote: post #217
unglaublich wrote: post #164

... and let others pay for the upkeep of the country that enabled your success :).

Why should anyone have sympathy for a system that tries to take away your freedom by force if you don’t submit to it. Stop paying your taxes for a moment, even a small amount say $2000 and witness how much expense the system is willing to spend to try and claw back that tiny amount from the individual. The people enacting these systems don’t even “pay their share”, yet they’ll be the first to try and make you angry a…

I think it is about preventing others to retain those $2000, I guess spending money to go after one serves in order to save money to go after 100 at a later stage?

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

#223

Post by titzer »

whywhywhywhy wrote: post #217
unglaublich wrote: post #164

... and let others pay for the upkeep of the country that enabled your success :).

Why should anyone have sympathy for a system that tries to take away your freedom by force if you don’t submit to it. Stop paying your taxes for a moment, even a small amount say $2000 and witness how much expense the system is willing to spend to try and claw back that tiny amount from the individual. The people enacting these systems don’t even “pay their share”, yet they’ll be the first to try and make you angry a…

You were this close to getting it. The system will move heaven and Earth to get $2k from a random joe blow but will let a corporation just "sudo pay no taxes" and get out from paying BILLIONS.

The system is rigged.

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

#225

Post by Retric »

imgabe wrote: post #94
Retric wrote: post #74

Earlier quoted context omitted.

The US government is the worlds largest charity, it also does a lot of other things. However it accepts donations and supports the poor, arts and sciences etc. There are even plenty of things people might want to donate too that only governments do, the Red Cross etc are hardly building space telescopes or US highways.

Taxes are not donations. You don’t go to jail if you refuse to give a donation.

Never said they where, but you can donate money to the US government:

https://www.gsa.gov/about-us/regions/welcome-to-the-greater-...

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

#226

Post by bombcar »

Anyone interested in the actual map, it can be found here:

https://cimsprodprep.cdfifund.gov/CIMS4/apps/pn-nmtc/index.a...

The purpose of the QOZ is to encourage investment in those areas, and it does this by favorable tax conditions.

Some of these areas are surprising, at least around me I see areas designated that aren't much different from the surrounding areas. And there are rural ones, too.

Looking at some of the ones above in street view, I can see why they're classified as they are, and I could certainly see a start-up choosing to place an office in one of those locations. Some are transit-close, even.

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

#227

Post by ericmay »

mcv wrote: post #206
ericmay wrote: post #198

Earlier quoted context omitted.

I agree and disagree. I agree that it’s sloppy legislation and to that end the group to blame is the government (and ultimately the people). But I disagree that if the rules don’t get enforced that it’s seemingly “ok” for people to exploit it. They should have common decency and ethical guidelines here. Probably why I’m not one of them.

I didn't say it was ok to exploit it. I say it's unavoidable that people will exploit it. I do wish we could run society purely on goodwill and people's intrinsic morality, but we've got a society that pushes people to crave more and more wealth, and those two don't go together.

I apologize. The reading I had was you were kind of nonchalant about it in an almost accepting way. Though, I'd say there are many who would say it's ok "because you can", and I think they're irresponsible and disrespectful of themselves and their fellow humans.

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

#228

Post by pc86 »

hyuuu wrote: post #66
rdl wrote: post #42

Assuming this is about being a US citizen and doing this: Option B: Move to Puerto Rico, run your company from here, do Act 60, zero capital gains tax. It's challenging to build a successful billion-dollar-exit company in PR, though.

why is it challenging? especially in a more remote friendly world we live in

Are you saying it's not challenging to have a billion-dollar exit?

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

#229

Post by mcv »

ericmay wrote: post #227
mcv wrote: post #206

Earlier quoted context omitted.

I didn't say it was ok to exploit it. I say it's unavoidable that people will exploit it. I do wish we could run society purely on goodwill and people's intrinsic morality, but we've got a society that pushes people to crave more and more wealth, and those two don't go together.

I apologize. The reading I had was you were kind of nonchalant about it in an almost accepting way. Though, I'd say there are many who would say it's ok "because you can", and I think they're irresponsible and disrespectful of themselves and their fellow humans.

I certainly don't think 'legal' necessarily implies 'moral'. Sometimes they're the exact opposite. There are also things that aren't legislated that should still guide us.

For example, it's not illegal to be an asshole to someone. But that doesn't make it okay either. It's not something that's ever going to be legislated, and I don't think it should be. Tax rules, on the other hand, should be legislated, because the same people will always take advantage of them if they can. I don't see purely voluntary tax as working (though a certain type of libertarian loves to suggest exactly that).

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

#230

Post by nobodyandproud »

imgabe wrote: post #146
truckerbill wrote: post #141

Earlier quoted context omitted.

The utility of money decreases the more you have (outside of lifestyle inflation). When basic needs of society (like housing) aren't being met, there shouldn't be a cap on what the wealthy pay imo.

The "money" the very wealthy have is not cash sitting in a checking account but usually shares in some corporation. That absolutely has utility if you want to continue having a say in how your company is run. Besides, should the government come around and check for any property that it deems you're not sufficiently utilizing and confiscate it from you? It seems like that policy could be abused. The government already…

Not the OP but

> The "money" the very wealthy have is not cash sitting in a checking account but usually shares in some corporation. That absolutely has utility if you want to continue having a say in how your company is run.

So what? That’s the cost of of going public. That the wealthy found a way to abuse it (share classes) means they’ve made the stock market less useful for everyone else.

> Besides, should the government come around and check for any property that it deems you're not sufficiently utilizing and confiscate it from you? It seems like that policy could be abused.

You’re jumping the gun here but…

The government is already involved in property rights. There is no concept of ownership without a government supported legal framework.

A government is expected to be involved with limited resources, and discourage undesirable outcomes while encouraging good ones. My government does this through tax benefits and tax penalties.

I don’t see most people asking for more than this.

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