I fail to see how.
Entrepeneurs aren't going to not build a company because of some specific tax treatment that only applies whilst they are wildly successful.
Entrepeneurs aren't going to not build a company because of some specific tax treatment that only applies whilst they are wildly successful.
No SpaceX, no Tesla, no iPhone, etc.
Selling masses of stock to pay the tax will push the value of the stock down. That has a large effect on the company's ability to raise capital.
As for the entrepreneur, he'll have much less capital to invest.
It's a fantasy that one can extract endless billions from a company and its investors without consequences.
Most entrepreneurs would be overjoyed to be a billionaire and have to pay that extra 15%. Seems like they'd be the lucky ones. Seems like a billionaire or an aspiring billionaire complaining about such a thing would be pretty weird.
The parent you replied to mentioned wealth being locked up to avoid capital gains taxes. There are other pros and cons, I'm sure. Do you think this new tax on billionaires means that less people will be trying to become multi-millionaires?
Note that I'm not happy with the current tax system, and this seems like another kludge. I also don't know that we need to coddle or incentivize wealth maintenance, it's not an end in and of itself.
Even worse, you're taking the money away from the most effective investors.
It eliminates the risk to established entities to be disrupted.
And most entrepreneurs are not, nor will never be, billionaires who are subject to this extra tax. That being the case I wouldn't think that this will put a dent in overall entrepreneurship. It might have the opposite effect, where there are numerically more entrepreneurs making capital allocation decisions, which might be better for society than having fewer people (billionaires) controlling an ever increasing amount of capital.
I grant that tax changes like this have numerous conflicting effects, sometimes unpredictable. Perhaps their will be another art bubble...
I don't think that it's a good thing that we structure our society for the convenience of those who can amass money. I'm definitely not fond of kludgy taxes like this one, but I also don't understand why so many jump to the defense of so few billionaires.
And Steve jobs did t inject money into apple when they were creating the iPhone.
So you’re entire point has been pretty much invalidated
No Jobs money => no Pixar => no Next => no iPhone
Neener neener!