KoastPhire t1_j2f4fss wrote on December 31, 2022 at 8:22 PM

Reply to comment by DrewsBag in ELI5: Tech billionaires lost $400 billion this year. Where does it go? Does anyone gain? by ChickenEnthusiast

Say I have a start up. Series C funding is valued at 3 billion dollars and I own 1/3. I use my stock to secure a credit line worth $250M at the prime rate, and I go and buy 10 houses, a yatch and a plane. I haven't sold anything, but I have $200 million in assets without paying a single dollar in taxes. Why am I able to access it and spend as if I paid taxes on that? Cherry on top is that the stock is still in my name, if Series D makes my stock value 5x, not only did I spend the money, but I'm worth more.

Explain where is the "fair share" here?

I have more scenarios on how the rich avoid taxes, if you like to engage more.

Crepuscular_Oreo t1_j2f9igv wrote on December 31, 2022 at 8:59 PM

You also have $200 million in liabilities, so at this point your net worth has not increased.

The good news is that a lot of construction workers, boat builders, and airplane builders have jobs.

KoastPhire t1_j2f9vs6 wrote on December 31, 2022 at 9:02 PM

>You also have $200 million in liabilities, so at this point your net worth has not increased.

It's not about the networth if you read what I typed. It's about having these assets without paying taxes first.

>The good news is that a lot of construction workers, boat builders, and airplane builders have jobs.

So your logic is that they get a pass because $20M of the $200M goes to the worker? Or did you assume the workers get $200M of the spending? Did you factor that the workers for yatchs and planes aren't in the US?