Comment on But how would they be able to live on that?
Wrench@lemmy.world 6 months agoThat’s why it’s a wealth cap. That’s net worth, not income.
You exceed the 20m cap, you have to pay the excess to taxes. If it’s locked in company shares, you have to sell them and pay that in taxes.
jj4211@lemmy.world 6 months ago
The tricky part is that has implications for business control. Other people speculate the market cap into 50m and then they take over control if your company, because you are forced to sell off your stake. So an arbitrary coalition of 3 rich dudes can just take over your company on a whim, if it is vaguely important enough. A coalition of rich people is not likely going to treat the customers or employees better.
Wrench@lemmy.world 6 months ago
I think that’s a solvable problem. Theoretical value of a private company’s shares would need to be more flexible because the real worth won’t be known until selling your stake, or the company going public where there is a concrete value.