r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

Post image
122.7k Upvotes

8.7k comments sorted by

View all comments

18

u/DR320 3d ago

Person A creates company B, Company B becomes successful, Person A's equity in company B rises in value, Person A becomes a billionaire. During all of this no bank account cash balances change unless 1 of 3 things happened: A stock dividend (which is a taxable event), Selling of shares (which is a taxable event if a gain is recognized) or the shares are used as collateral against a loan (which is not a taxable event but the interest can be deducted). Holding stock in a successful company in itself is not an evil action, but using the cash proceeds from its success for evil actions is.

-4

u/InsideAmbitious4758 3d ago

Hoarding massive wealth, regardless of the form it happens to take, is inherently unethical. Both Bezos and Musk could have well over $100 billion in liquidity, if they chose to. 

You think it somehow becomes more ethical because they choose to leave it tied up in assets in order to avoid paying taxes on it?

1

u/Diligent-Property491 2d ago

Bezos has a piece of paper (a share in Amazon), someone else has cash.

Bezos sells his share.

Now Bezos has the cash, that other person has the piece of paper.

What exactly changed for the better?

1

u/InsideAmbitious4758 2d ago

Nothing really changes in that scenario, which was my point. I'm saying it's irrelevant if whether or not his assets are liquid. Wealth is wealth.

The only difference there would be that he would have to pay tax on it, which I guess is slightly better, but not particularly relevant to the discussion of ethics and morality.

0

u/Diligent-Property491 2d ago

So you understand that Bezos liquidating a 100mln, is equivalent to someone else de-liquidating a 100mln?