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I would guess not much reduction in investment. If you have 100m dollars, there's only a limited number of places you can put it. What are you proposing re: dir
by adam_arthur 5y ago
I would guess not much reduction in investment. If you have 100m dollars, there's only a limited number of places you can put it. What are you proposing re: direct income generation?
It will lead to reduced liquidity though. E.g. holders of assets are likely to sell less frequently to avoid the higher tax burden.
- seanmcdirmid 5y ago> If you have 100m dollars, there's only a limited number of places you can put it. Stock market is a risky place to put it for sure, especially if the upside is taxed more aggressively. > What are you proposing re: direct income generation? They will invest more in private businesses and just take a salary, which is also taxed as income.
- adam_arthur 5y agoMost wealthy people are likely to own dividend paying stocks, so valuations don't matter as much for risk re the market. They get paid every quarter by the company, and can just live off of passive distributions. If they follow what you're proposing, they pay the higher tax rate anyway. But also don't think that's really feasible at very high net worth.