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Someone like Bezos could probably take out a 100 million dollar loan at 2% interest and just pay $2 million/year in interest in perpetuity, right (via realized
by defen 6y ago
Someone like Bezos could probably take out a 100 million dollar loan at 2% interest and just pay $2 million/year in interest in perpetuity, right (via realized capital gains)? Then they'd be well under any plausible 100% tax window.
- bhupy 6y agoDepending on the proposal, a 1% annual wealth tax on Bezos would amount to $2 billion per year. If he borrowed that at 2% interest, that's $40 million/year in interest in perpetuity. Even at a more modest 0.1%, Bezos does not have $2 million / year in cash, his book income is $82,000/year, and Amazon doesn't pay dividends. Also, this is just for Bezos — depending on how volatile the paper-wealthy founder's company is, the interest would be higher, and the long run ability to pay off just the interest would be lower.