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> get 1 USD wage as CEO and remainder in stock, for example This is usually not possible. In Denmark you are taxed the same whether you receive your payment in

> get 1 USD wage as CEO and remainder in stock, for example This is usually not possible. In Denmark you are taxed the same whether you receive your payment in stock or money. When you receive stock, you are taxed on the value of the stock at receive time -- obviously this is awful for receiving grants in a startup where the paper value is high, the stock is iliquid and the risk is substantial. I think where the rich really benefits are the equity line of credit (ELOCs), where they effectively move money around without generating taxable events -- usually for very small interest payments.

maccard 4y ago
Those ELOC schemeshave been clamped down on _hard_ in the last decade to the point of not really being a thing anymore The real benefit to the rich is capital gains rates are significantly lower than income tax rates in many places, so anyone who is paid via capital gains pays significantly less tax. The income tax over 150,000 in the UK is 45% plus 3% for national insurance, and capital gains is a flat 20% for someone on that income level.
wsc981 4y ago
The point is that most taxes except wealth and consumption taxes are very easily avoided by wealthy people. Perhaps even taxes on wealth are hard, since wealthy people can just create some kind of charity and move most of their wealth into the charity. Make the charity fully controlled by the family and it's a great way to protect ones wealth. Most of the income can be spend on stock purchases and perhaps <1% of the yearly profit can be spend on the actual charity, while another big part of the profits can be used to provide secure income for family members and friend working for the charity. Also, it's a way to avoid inheritance tax and to prevent someone running off with part of the wealth after a divorce. Taxing income is in my opinion both unethical and rich people can avoid tax on most of their income anyways if they put in a little effort.
- Sebb767 4y ago
  > while another big part of the profits can be used to provide secure income for family members and friend working for the charity. Income which you need to tax. So you just jumped through another hoop before having to pay income tax.

maccard 4y ago

Those ELOC schemeshave been clamped down on _hard_ in the last decade to the point of not really being a thing anymore The real benefit to the rich is capital gains rates are significantly lower than income tax rates in many places, so anyone who is paid via capital gains pays significantly less tax. The income tax over 150,000 in the UK is 45% plus 3% for national insurance, and capital gains is a flat 20% for someone on that income level.

wsc981 4y ago

The point is that most taxes except wealth and consumption taxes are very easily avoided by wealthy people. Perhaps even taxes on wealth are hard, since wealthy people can just create some kind of charity and move most of their wealth into the charity. Make the charity fully controlled by the family and it's a great way to protect ones wealth. Most of the income can be spend on stock purchases and perhaps <1% of the yearly profit can be spend on the actual charity, while another big part of the profits can be used to provide secure income for family members and friend working for the charity. Also, it's a way to avoid inheritance tax and to prevent someone running off with part of the wealth after a divorce. Taxing income is in my opinion both unethical and rich people can avoid tax on most of their income anyways if they put in a little effort.

Sebb767 4y ago
> while another big part of the profits can be used to provide secure income for family members and friend working for the charity. Income which you need to tax. So you just jumped through another hoop before having to pay income tax.