Comment

Bo Burnham and Socko Explain: "How the World Works"

67
Hecuba's daughter7/25/2021 1:27:02 pm PDT

re: #61 JC1

That’s a fair concern, though I’m not aware of any major publicly traded companies where someone owns an outright majority of shares. In such an edge case where paying 2% of one’s net worth would cause one to lose control of a company, a few options are readily apparent:
1) pay a dividend to pay for the wealth tax
2) take out a loan against a portion of the shares
3) issue a different class of shares with different voting rights.

I’m sure that there are other solutions.

But there are privately held companies or LLC’s that have shared ownership. How are these organizations valued? It may be difficult for someone in such company to come up with the cash needed to pay this tax.