Right, but then a CEO like Jensen Huang already has a paycheque to cover that sort of thing.
The question is what is it really like to have your stock holdings go from $5 billion to $120 billion as a result of the company you run getting caught up in the AI hype bubble? Honestly I think not much. Just a number changing on the computer screen, like a new high score in an arcade game.
How much do I think it affects his daily life? Pretty much not at all. Yet if it went back down to $5 billion people would be screaming at the company and he might be fired. It’s very strange!
If he’s smart he’s not taking a pay check. They get bank loans backed by stock. They never part them of and the bank just assumes the estate will settle it.
They have to bet on Nvidia staying valuable enough to cover the loans though. (Or not, hence the adage about owing the bank a billion dollars).
That’s a consequence of capital gains tax being structured the way it is.
I think one of our biggest issues as a society is the way we try to use tax to target specific people. It never works out! They just find ways around it.
We should be trying to set up a tax system that’s very simple, straightforward, and easy to enforce, such as land value taxes.
His stock options would be capital gains. But the loan trick works on either one. No selling stock, no capital gains taxes, paycheck/salary, no income taxes.
But you still get mansions, compounds and mega yacht fleets.
And land value taxes work on both. I mean, unless he wants to live on that yacht and not own any mansions of course. But the land value tax is still going to get him (indirectly) when he pulls into the marina.
I suspect a lot of mansions and compounds would become bank and company owned and the billionaires homes addresses would all be in the nearest tax haven.
It would probably do wonders for all the empty highrises in Boston and NYC, where all the Chinese and Arab oil wealth is stored.
Even 1 billion covers everythign most of us could ever hope for in our entire live.
Right, but then a CEO like Jensen Huang already has a paycheque to cover that sort of thing.
The question is what is it really like to have your stock holdings go from $5 billion to $120 billion as a result of the company you run getting caught up in the AI hype bubble? Honestly I think not much. Just a number changing on the computer screen, like a new high score in an arcade game.
How much do I think it affects his daily life? Pretty much not at all. Yet if it went back down to $5 billion people would be screaming at the company and he might be fired. It’s very strange!
If he’s smart he’s not taking a pay check. They get bank loans backed by stock. They never part them of and the bank just assumes the estate will settle it.
They have to bet on Nvidia staying valuable enough to cover the loans though. (Or not, hence the adage about owing the bank a billion dollars).
That’s a consequence of capital gains tax being structured the way it is.
I think one of our biggest issues as a society is the way we try to use tax to target specific people. It never works out! They just find ways around it.
We should be trying to set up a tax system that’s very simple, straightforward, and easy to enforce, such as land value taxes.
You mean income tax.
His stock options would be capital gains. But the loan trick works on either one. No selling stock, no capital gains taxes, paycheck/salary, no income taxes.
But you still get mansions, compounds and mega yacht fleets.
And land value taxes work on both. I mean, unless he wants to live on that yacht and not own any mansions of course. But the land value tax is still going to get him (indirectly) when he pulls into the marina.
I suspect a lot of mansions and compounds would become bank and company owned and the billionaires homes addresses would all be in the nearest tax haven.
It would probably do wonders for all the empty highrises in Boston and NYC, where all the Chinese and Arab oil wealth is stored.