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by yummyfajitas
4613 days ago
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If you acquired your shares for $0 (for example, you contributed your labor to earn those shares), then upon selling the business in your example you would recognize capital gains of $165k, not $65k. Yes, I was assuming you purchased at $100k to illustrate the cost basis. I should have been more clear on that point. If you want to argue that double taxation is justified as the price of limited liability, go ahead. But it's silly to compare the capital gains rate to the income tax and then ignore the corporate tax rate. Combined they amount to a lot more than personal income taxes. This is why the wealthy contribute such a disproportionate amount to the US treasury. |
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Overall US taxes (from all sources) are approximately flat taxes, if considered relative to wealth, as you seem to be doing. The wealthy contribute roughly the same share of their wealth to the treasury as the less wealthy do. The 90th-percentile-and-above of richest Americans own about 75% of the country's assets in aggregate, and pay about 75% of the country's taxes in aggregate.