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thesquanderer

(13,009 posts)
5. I never understand this. Most of these guys' wealth is in owning huge amounts of stock in the companies they founded.
Tue Mar 3, 2026, 10:17 AM
Mar 3

So Zuckerberg, Bezos, etc. probably don't even HAVE 5% of their wealth in cash, or anything remotely near that.

So this is what I don't understand about these plans. For Zuckerberg/Bezos to pay the 5% tax, they'd probably have to sell 5% of their stock in Meta/Amazon. IOW, for the government to collect the proposed $11 billion in taxes from them, these guys would probably have to sell $11 billion of their companies' stock. Even assuming there are enough buyers with enough cash to buy that enormous amount of stock that would suddenly be offered to purchase, having all of that stock suddenly "for sale" will drive down the price of the stock, meaning...

... all other owners of the stock will be taking a loss in THEIR net value as the price of the stock goes down, as the market is flooded with additional shares for sale, and

... Zuckerberg/Bazos would probably have to sell MORE than 5% of that stock (perhaps a lot more) to raise enough revenue to pay the tax, because the more shares they sell, they less they can get for them.

And they'd have to do it again every year!

Who would even want to own a stock that will be flooded with a tremendous amount of dilution every year?

Maybe I misunderstand this, but this whole concept has never made sense to me. Am I missing something? Can someone explain to me how this is supposed to work?

Recommendations

2 members have recommended this reply (displayed in chronological order):

That's a good start, ultimately taxing 50% of EVERY billion. Buddyzbuddy Mar 3 #1
Actually, taxing 50% of every billion would be an excellent start. thought crime Mar 3 #9
Honestly the target should be the corporations more than the wealthy directly. cstanleytech Mar 3 #2
Social media and news will be flooded with claims of how this will destroy the economy. groundloop Mar 3 #3
It will definitely hurt the private jet and yacht economy. ToxMarz Mar 3 #4
And the entire rocket to Mars industry. thought crime Mar 3 #10
If he's going soon, i could support that one! ToxMarz Mar 3 #11
I never understand this. Most of these guys' wealth is in owning huge amounts of stock in the companies they founded. thesquanderer Mar 3 #5
Now, now, no asking sensible questions! Get on the outrage train!! TOOT-TOOT!! lol EX500rider Mar 3 #8
Bezo's yacht costs $70,000. A day to exist but don't worry he makes that in 3 hours questionseverything Mar 4 #12
Except 5% of his net worth is 12 billion a year, as the other poster said hard to sell that much stock without cratering EX500rider Mar 4 #14
I just paid my taxes.... It was hard to do and still keep a roof over head and eat questionseverything Mar 4 #15
And were you taxed on your income or your net worth? nt EX500rider Mar 4 #16
As far as I'm concerned with the billionaires, we can tax them or eat them questionseverything Mar 4 #17
And while they are at it... Scalded Nun Mar 3 #6
Pearl clutching time by MAGAts in Congress!! ProudMNDemocrat Mar 3 #7
Tax Trump first. Emile Mar 4 #13
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