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.
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.