Thread by @donmoyn

This is an incredible story of how a tax break aimed at small businesses is converted into a tax-free intergenerational wealth accumulation machine for Silicon Valley investors. Via @JesseDrucker @maureenmfarrell
nytimes.com/2021/12/28/bus…

One takeaway here is that Congress passes tax laws without really understanding the long term costs b/c they do not anticipate how the tax avoidance industry will weaponize it

The cost of this tax loophole is at least $60 billion but probably multiples of that because of the creative ways it is being exploited. It’s so bad the Trump admin tried to corral it, but faced pushback from tax lawyers.

Hat tip to the visionary partners at Andreessen Horowitz, who are creating incredible value by *checks notes* refusing to pay the 15% tax rate to the country that made them rich.

Thread from one of the authors here. The killer is that we are talking about people avoiding a tax rate (15%) that is way less than half (37%) of what they would pay if the money came as salary. Already privileged by the tax system, but its not enough.

https://twitter.com/JesseDrucker/status/1475853937597198339?s=20