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At least in the case of stock, it’s possible they can’t sell it to pay the tax
by elemdos 10mo ago
At least in the case of stock, it’s possible they can’t sell it to pay the tax
- lazide 10mo agoThat is typically the case (depending on the timeline) for all but publicly traded or relatively sought out/well known private firms. Even for many of those, it’s not going to be easy. You can’t just go out and start selling stock to the public without a huge amount of legal paperwork.
- AngryData 10mo agoThat seems like a buyer beware situation. Nobody forced them to invest money in it, and if they lose out in the end that is the risk they take, the same with any other investment. You can't buy a piece of commercial property and not pay any taxes, or start a business and then claw back taxes you already paid because it failed later on down the road.
- pfannkuchen 10mo agoWould you only apply this to stocks acquired after the new tax law was passed then?
- AngryData 10mo agoIt would probably need a grace period so things don't go crazy, but after that then yes. It would also have the benefit of pumping stocks being lower and more risky, and could help prevent stock bubbles from rising so big and fast.