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Bezos doesn't sell stock. What little he does goes into Blue Origin and is written off again. When Bezos needs cash, he just borrows from the bank using his sha
by ohgodplsno 5y ago
Bezos doesn't sell stock. What little he does goes into Blue Origin and is written off again. When Bezos needs cash, he just borrows from the bank using his shares as collateral. No taxes.
- nomel 5y agoBorrowing mean returning the money at some point. Where does this money come from, and how isn't it taxed?
- fossuser 5y agoPerson dies, wealth gets inherited at new cost basis, heirs pay off loans with new (higher) cost basis, tax revenue isn’t collected. At least that’s the model as I understand it.
- nomel 5y agoI assume this means the banks are giving > 40 years loans? Isn't inheritance tax fairly high? A quick search says 40% federal, with around 20% state.
- fossuser 5y agoIIRC estate tax doesn't kick in until after ~$20M? I don't really know much about this particular area of tax law though so I wouldn't rely on my comments.
- djrogers 5y ago> tax revenue isn’t collected. If you completely ignore estate taxes, this would be true.
- fossuser 5y agoYeah you're probably right - my tax knowledge of this area is not great since I haven't had to care about it. I think that kicks in after $20M?
- arn 5y agoThis is not true. He realized $4 billion in gains in that ProRepublica article people referenced, and he regular sells shares. https://www.forbes.com/sites/rachelsandler/2021/05/11/jeff-bezos-sells-third-batch-of-amazon-shares-in-a-week/?sh=51be133792c0 https://www.forbes.com/sites/rachelsandler/2021/05/11/jeff-b...