If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?

Question

If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?

In: 14

Answer 1

You only have to pay taxes if you make income, for example from selling stock. If you just never sell, then you don’t make any income from those stocks, so you don’t have any taxes to pay. You might have some other income from dividends or salaries that don’t require you to sell shares. Since this income is just cash, you just reserve a portion of that cash to pay taxes.