Prominent Silicon Valley billionaire and investor David Stewart tweeted President Joe Biden’s capital gains tax, proposed to be raised about 20 percent, would make it harder for startups to recruit because “the tax system will punish their employees.”
“If Biden increases the long-term capital gains tax rate from the current 23.8% up to a new cap of 43.4%, it could neuter America’s entrepreneurial ecosystem,” Stewart explained. Capital gains rates apply when an asset is for gain after being held a year.
Stewart said he “ran the numbers” and determined an employee working at Google earning $400,000 per year in California “pays 38 percent of income over 10 years in taxes.”
I ran the numbers. A Googler earning $400k/yr in CA pays 38% of income over 10 years in taxes. Today, the startup founder pays 36% of her $3.9m 10-year income. Under Biden’s plan, the Googler’s taxes don’t change but the founder’s rate