4 ms·
What about privately-held stocks?
by organsnyder 7y ago
What about privately-held stocks?
- Chirael 7y agoSounds like it would be a big incentive for companies to stay private as long as possible.
- krajzeg 7y agoWhile not a viable way to actually do things, it is fun to imagine crazy unicorns like WeWork being taxed on their outrageous valuations.
- blacksqr 7y agoMany privately-held companies sell stock, and their value can thus be calculated. For those that do no stock trades, a gross income tax would be a simple alternative.
- organsnyder 7y agoSeems like a strategy could emerge to do private sales at well below estimated value, in order to game this system. You could make it illegal, but it would be incredibly hard to prove (and harder still to detect).
- blacksqr 7y agoSeems like such a strategy would already be illegal as a means of avoiding capital gains taxes. It would also have the side-effect of destroying the company's valuation and thus its credit rating.