I could use help with language around countering when someone comes with the argument of “Jeff Bezos didn’t pay anything in federal taxes,” is this claim just factually wrong? Or are say the “top 0.01 percent able to avoid paying any taxes?”
I could use help with language around countering when someone comes with the argument of “Jeff Bezos didn’t pay anything in federal taxes,” is this claim just factually wrong? Or are say the “top 0.01 percent able to avoid paying any taxes?”
Similar to what Stephen said...Bezos' annual "income" largely is not by way of salary or hourly pay like the rest of us. Asset valuation and capital gains is where he makes the bulk of his money from year to year. I'd actually love to see a follow-up piece from Josh that explores capital gains tax and carried interest loophole.
I get that, but when you have a stock purchase plan, you are taxed as income when the stock purchase award vests, then again when you sell the stock as capital gains. I know this is slightly different for officers, but it should be functionally the same way. This should mean that he WOULD pay income tax when the AMZN stock is awarded.
…unless he isn’t being awarded any stock and is just living off the investments he has, which in that case why not just become a limited partner and not be involved in the company business.
… which is what he did recently. So yeah I probably answered my own question
You'll get no disagreement from me, and I don't mean for my comment to be definitive or anything resembling an expert take. It's the best I can do as far as I understand it and am more than happy to be corrected.
He may not pay anything in federal income taxes per se. Most of his wealth is in the stock of Amazon, and he won't pay taxes until the stock itself is sold (believe Elon paid in excess of $11bn recently w/ a Tesla stock sale, not exactly chump change).
I could use help with language around countering when someone comes with the argument of “Jeff Bezos didn’t pay anything in federal taxes,” is this claim just factually wrong? Or are say the “top 0.01 percent able to avoid paying any taxes?”
Similar to what Stephen said...Bezos' annual "income" largely is not by way of salary or hourly pay like the rest of us. Asset valuation and capital gains is where he makes the bulk of his money from year to year. I'd actually love to see a follow-up piece from Josh that explores capital gains tax and carried interest loophole.
I get that, but when you have a stock purchase plan, you are taxed as income when the stock purchase award vests, then again when you sell the stock as capital gains. I know this is slightly different for officers, but it should be functionally the same way. This should mean that he WOULD pay income tax when the AMZN stock is awarded.
…unless he isn’t being awarded any stock and is just living off the investments he has, which in that case why not just become a limited partner and not be involved in the company business.
… which is what he did recently. So yeah I probably answered my own question
You'll get no disagreement from me, and I don't mean for my comment to be definitive or anything resembling an expert take. It's the best I can do as far as I understand it and am more than happy to be corrected.
He may not pay anything in federal income taxes per se. Most of his wealth is in the stock of Amazon, and he won't pay taxes until the stock itself is sold (believe Elon paid in excess of $11bn recently w/ a Tesla stock sale, not exactly chump change).
He might never pay taxes. And thanks to the step up in basis, his heirs won't pay taxes either. Even when they sell the stock.