Let's look at what a 1% US wealth tax would mean for Jeff Bezos.
He founded Amazon 26 years ago.
A 1% wealth tax means he keeps 99% of Amazon stock each year.
.99^26 = .77 = 77%
So he'd currently be worth $145B instead of $188B.
PG is saying Bezos would have left the US because of that?
Edit after twitter conversation with PG:
He doesn't believe Bezos would have not started Amazon in the US if there was a wealth tax. He thinks a US wealth tax might marginally reduce the number of founders that choose to come to the US to start a company.
I still disagree.
I think great founders will start companies in the place that maximizes the chance they create an Amazon-level success, not in the place with the lowest taxes.
At some point taxes may be too aggressive but a low single digit wealth tax isn't that.
He founded Amazon 26 years ago.
A 1% wealth tax means he keeps 99% of Amazon stock each year.
.99^26 = .77 = 77%
So he'd currently be worth $145B instead of $188B.
PG is saying Bezos would have left the US because of that?
Edit after twitter conversation with PG:
He doesn't believe Bezos would have not started Amazon in the US if there was a wealth tax. He thinks a US wealth tax might marginally reduce the number of founders that choose to come to the US to start a company.
I still disagree.
I think great founders will start companies in the place that maximizes the chance they create an Amazon-level success, not in the place with the lowest taxes.
At some point taxes may be too aggressive but a low single digit wealth tax isn't that.