alt Hacker NewsI hate that CEOs make 325x more than an average worker whereas is 1965 they made 21x. But whenever I see something about taxing unrealized capital gains, it makes me wonder: are we also going to give tax credits for unrealized capital losses?
I hate that CEOs make 325x more than an average worker whereas is 1965 they made 21x. But whenever I see something about taxing unrealized capital gains, it makes me wonder: are we also going to give tax credits for unrealized capital losses?
It's really a proxy measure on a couple tax evasion strategies, like the one where you borrow against your shares and default on purpose letting your bank take them. There is no taxable event because legally you're not selling anything. You're just turning shares into money at the market rate.
If you tried to ban all of the known strategies they would just come up with new ones. That's why we need more general solutions like unrealized gains tax.
Of course for the long term it would be better to replace traditional shares with time limited ones that give you a percentage of profits for 5 years but no voting rights. Power stays with workers and no one gets unlimited returns on a one time investment. And enforce pay equality where no one can get more than 20x median total comp. But I think that's too radical to pass anywhere today.