That is not "making the rich richer", the person has to buy in a company worth less than $50M in value and hold it for 5+ years. This is a pretty rare case and helps people get into the single digit millions, not billions...
There are two different categories. Those who have "single digit millions" are "rich" by any reasonable scale. In the us, a net worth of $1 million would put one at around the 89th percentile while a net worth of $10 million would be around the 99th percentile.
Those who have "billions" are an entirely different category which presents its own problems -- perhaps we need a different term for it. Maybe "Super-rich"?
At any rate, you might want to be careful with the language you use. QSBS does appear to make the rich richer. It probably does not make a big difference in making the super-rich become richer. I would suggest making an effort to use language that makes it clear which you are talking about and one that does not suggest that people with "single digit millions" are not rich. Because we ARE rich, and we need to recognize that fact and behave accordingly as members of society.
- 10M cap applies to per entity per year per transaction. so if 10 of my investments every year have gain of $10M each - I pay exactly ZERO DOLLARS in state and federal taxes on this $100 million income every year.
- On top of it, If I make more than $10 million in a year on one transaction - there are ways to split this gain over multiple years (via deferred transactions) or over multiple entities (via trusts and LLCs)
I know on good authority that most GPs in venture funds pay very little capital gains tax due to QSBS “loophole”.