If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?
In: 14
Income is taxed, not assets. If you earn $1M in income, you might pay $300k of that income in taxes leaving you with $700k of net income. So there’s usually no need to sell off stocks to pay taxes. Additionally, they usually only sell off a small portion of their stocks, which doesn’t really endanger their control of the company.
Latest Answers