This is gross.
This is an argument for either flat tax or a tax system without deductions, otherwise we will always have loopholes like this. You can’t have your cake and eat it too.
How to have a billion dollar exit with zero capital gains tax
21–30 of 305 posts
Re: How to have a billion dollar exit with zero capital gains tax
#22Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?
I think, like most things, it’s a bell curve - the bulk of the people want to contribute a reasonable amount while some want contribute none and some extra. The glaring issue in the United States is how much capital is gained — though I prefer ‘allocated to’, as the people do the work — by a minuscule portion of the population and the paltry taxes they then pay.
Re: How to have a billion dollar exit with zero capital gains tax
#23Earlier quoted context omitted.
The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…
The author suggests operating in areas near colleges because they're developed but the students artificially depress the wages (there's a big difference between a median income of $10k for a neighborhood of families vs college students). Selling these tax laws as the will of the people is a bit of a stretch.
Afaik the local governments choose the opportunity zones. They probably put those zones next to colleges because they met the requirements AND someone locally thought it would be a good idea to develop there. I definitely still think it's the will of the people deciding how to allocate some money that would otherwise sit in a stock much longer instead.
Re: How to have a billion dollar exit with zero capital gains tax
#24Earlier quoted context omitted.
Or...the government is corrupt and used by the wealthy to write loop holes that allow them to escape paying taxes.
If you think it's corrupt for the government to offer incentives for people to invest in underserved areas where they otherwise wouldn't, by all means, write your representatives, or run for office yourself to end this corrupt practice.
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Re: How to have a billion dollar exit with zero capital gains tax
#25Earlier quoted context omitted.
Or...the government is corrupt and used by the wealthy to write loop holes that allow them to escape paying taxes.
If you think it's corrupt for the government to offer incentives for people to invest in underserved areas where they otherwise wouldn't, by all means, write your representatives, or run for office yourself to end this corrupt practice.
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Re: How to have a billion dollar exit with zero capital gains tax
#26Wow, this is awesome. So for even a small amount of money, such as in the Kara $1120 example, you simply need to have offices or even cowork in a particular area and you get to write off all capital gains taxes. I'll need to look more into this for my corporation...
Re: How to have a billion dollar exit with zero capital gains tax
#27Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?
The government of USA is incredibly inefficient at getting anything done.
If I had billions of dollars I would always strive to legally pay as least taxes as possible and use the funds to contribute back the country in much more efficient ways, including investing in people who are provably getting shit done.
Here's the latest of a constant firehose of misuse of funds I've seen. The gist is that a Stanford professor is basically leeching $40K of tax money at a $5000/hr rate for "consulting" about social justice and equity in schools. I'd rather give that $40K directly toward educational supplies for underprivileged students, or to a hundred tutors and therapists at $50/hr, or something else.
https://nypost.com/2022/04/08/stanford-prof-calls-cops-on-be...
Re: How to have a billion dollar exit with zero capital gains tax
#28Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?
> Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?
You are working from a flawed model. Government spending is not tied at all to revenue. Over the past three years the federal government has dropped over 5 trillion dollars on the economy from a helicopter.
Why not take advantage of a loophole when money can and is being created out of thin air?
Re: How to have a billion dollar exit with zero capital gains tax
#29Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?
The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…
> If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break.
But then these corrupt, America-hating billionaires will spend millions digging up dirt on you, funding your opponents, and claiming you’re sending jobs to China.
Re: How to have a billion dollar exit with zero capital gains tax
#30Earlier quoted context omitted.
Do you also give all your information to a random caller that offers you a free cruise? I think you forgot that politicians are legally bribed to behave against the wishes and/or needs of the people. You're right that moralizing is beyond useless. Instead let's define the bounds of our morality by our tax code. What can go wrong?
I assume when you file your taxes, you refuse all deductions and tax credits that you're eligible for, because obviously the most moral thing is to give as much of your money to the government as possible, right?
Yes.