top | item 41578432

(no title)

maxrecursion | 1 year ago

That's a good idea for how the ultra rich can pay taxes without forcing them to liquidate stock, and at least addresses the core of the problem.

But if the stock "shared" with the tax collector paid enough in dividends to cover the taxes, couldn't they just pay the taxes with the dividends to begin with?

How does sharing the stock help? Wouldn't the tax collector need to liquidate the stock to get any actually value from it?

discuss

order

lhpz|1 year ago

A stock retains value even without producing dividends. Allowing wealth tax payments in the form of stock, rather than cash, addresses the liquidity issue, especially for large family-owned companies. The challenge lies in accurately valuing the stock for private companies, but that's where finance experts come in ! Furthermore, an agreement between the taxpayer and the wealth fund could accompany the transaction, including terms like holding the stock for a specified number of years, buyback preferences, or limited voting rights. At a discount on the stock price.

Given the financial and legal complexities, as well as the challenges in standardizing the process, this would only apply to payments of a highly substantial amount. But one could argue that these individuals are no longer equal to others in terms of their tax obligations, as they have some ability to negotiate to a certain extent. That's probably the main problem.

Just thinking out loud !