3 ms·
If you make very little money, then you don't pay much taxes. If you sell a company it's income. If that sale is a low amount, it's a small amount of taxes. If
by alkonaut 2y ago
If you make very little money, then you don't pay much taxes. If you sell a company it's income. If that sale is a low amount, it's a small amount of taxes. If you sell it for millions, it's a lot of taxes.
If I buy a home at $1M and sell it for $3M, I'm taxed for the $2M profit. Same if I buy a company for $1M and sell it for $3M then I'm taxed for the $2M profit. Whether that tax is 1% or 50% can of course be a subject of debate, but that it's taxed at all is hardly controversial.
Not sure I'm following the debate here but are people suggesting that if I start a company and later sell it for $3M then those $3M should NOT be taxed the same as If had bought it for $1 and sold it for $3M? Why would that be?