RT Brendan (can/do): This is the best way to end America's entrepreneurial culture. Most founders I know endure 100+ hours of work/week because they a...
A user argues that taxing illiquid stock holdings of founders with high-valuation companies would destroy America's entrepreneurial culture, noting that most founders work long hours for modest pay and would face bankruptcy or exile under such a tax. This is a response to Gavin Newsom's call for a national billionaires tax, citing wealth inequality and a broken system.
Background
- This is a 2012 tweet from Naval Ravikant (founder of AngelList, prominent Silicon Valley investor and commentator) replying to a proposal by Gavin Newsom — then California Lt. Governor, now Governor — for a "billionaires tax."<br />- The core dispute is about taxing unrealized capital gains: wealth tied up in unsold stock or company equity, not cash in hand. Founders often have high paper valuations but low salaries and little liquid wealth.<br />- Newsom's broader point: wealth inequality in the US has grown extreme, with the top 10% owning two-thirds of the nation's wealth while wages stagnate and costs rise.<br />- Naval's counter: taxing illiquid stock before a sale forces founders to pay cash they don't have, potentially bankrupting them or driving them to renounce US citizenship (a practice known as "expatriation") — which would destroy the risk-taking culture that produces new companies and jobs.