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Comment by IdontRememberIt | Hacker News Reader

Let's tax capital gain same as revenue and change the tax regulation for foundations (my wife is in this business and her blood is boiling with what she sees) and let's see how Bezos, Buffet, Gates, etc. will react...

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> change the tax regulation for foundations (my wife is in this business and her blood is boiling with what she sees)

What are some of the issues your wife has seen here?

Let's simply say that for most foundations its only real purpose is to lower someone's tax bill and the most efficient way to transmit assets to one's kids. The name of this financial structure is so misleading. Honestly I find it fascinating from the PR/Marketing side.

>Let's tax capital gain same as revenue

So if a startup grows from a $1M valuation to $100M valuation they should be taxed on the $99M? That sounds like a great way to kill entrepreneurship and venture capital.

I guess that's why people won't work harder to earn higher wages to avoid additional tax, wait, they do!

The point is that when investors are faced with the choice between investing in a incumbent (ie. "safe" company with limited growth potential) and challenger (high risk companies with high growth potential), such a tax would heavily favor incumbents because incumbents wouldn't be subject to the tax but the challenger would.

Many countries have exceptions to encourage entrepreneurship like the one you are mentioning.

Issues are borderline capital gain strategies to avoid revenue gain.

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