Mason  🏃‍♂️ ✂️

We need to talk about this until the media deigns to mention it. The major innovation hubs have paper millionaires (and billionaires) whose "wealth" is primarily ownership of their own fast-growing companies. Do we want them forced to liquidate or take massive loans against that?https://twitter.com/Jason/status/1193218506491228160 …

California has a massive wealth tax called property tax. You don't have to sell your house or condo to pay the taxes; you anticipate the tax and plan for it. Most people pay into an escrow account as part of each month's mortgage payment.

If you can't figure out how to keep a small fraction of your vast $1b+ fortune liquid, even if most of your fortune is tied up in equity, maybe you need to balance your portfolio & priorities.

Is California property tax 3%? 6%? If California *did* suddenly implement a 6% annual property tax, what do you imagine would happen? Which parts of the state would see movement, and which wouldn't? What heavy land use industries would be most impacted? Good thought experiment.

The point is its not difficult to plan for taxes and maintain some reasonable liquidity. In fact, its only difficult for people without means.

Coming up with $60 million in liquidity per billion in value every year is not reasonable by any stretch. Not everybody is a hedge fund manager or private equity just shuffling financial assets around. If you have real companies with real buildings and equipment, you can't do it.

Ok. Then why worry about it? Can’t happen won’t happen.

I am not especially worried because I see no chance whatsoever that it would get through congress, and then the courts. But I think it's important to point out what a toxic mess it is. I favor repealing the Trump tax cut by the way, as well as carried interest.