U.S. Tax-Break Said to Cost $100 Billion a Year, N.Y. Post Says
Victor Fleischer, a U.S. academic who specializes in exposing lenient tax-treatment of the wealthy, says the fact that people who start companies pay 15 percent capital gains tax when they sell their stock, rather than 35 percent income tax, costs the government $100 billion a year, the New York Post reported.
Founding entrepreneurs usually take a big slice of their pay as common stock, which enables them to defer tax and to pay the lower capital gains rate, the newspaper said.
Fleischer is writing a paper arguing that entrepreneurs selling their stock should pay the higher rate, the Post said.
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