One point made in the piece is maybe not super accurate, so I'm talking about it here. Tech workers started dressing in excessively casual ways at the office not because they were saying anything about "stealth wealth" (they were just normal-wealthy, at the time, at most, and only if they were very lucky), but because they were making a statement against traditional business norms. Tech was upsetting traditional business practices, and tech workers knew it. This (IMO) was also about arrogance, to an extent. They knew they could get away with being a little bit different, because tech skills were so valued.
I saw this in particular at a mutual funds company with a giant tech arm, where the tech workers were the only people allowed to wear jeans; everyone else had to wear suits.
(Source: me, I've spent multiple decades in the tech industry.)
Hi Anne! That’s such a great point and so true. Workers, however, are a somewhat different matter from their billionaire CEOS. You bring up a great point that these tech ultra wealthy may have begun dressing in this disruptive way- but their outfits never changed to match their outsized worth
Of course, the disparity of wealth in this country is a scary thing. But! I am so inspired by the decadent outfits from the wealthy wardrobe of generations passed…
This is why I love your podcast so much. “Fashion” is never just about the clothes!! Appreciated the very comprehensive overview of how the wealthy evade taxes. Now you got me wanting to read that tax book
Slightly backwards solution. Why not cap how much can be borrowed? Eventually Jeff will have to sell off some stock or assets & pay taxes on that income in order to purchase the next tiara, top hat or terrible company.
That is a really interesting thought! I was like huh! So I brought the idea to Professor Madoff. Sadly, this wouldn’t work to cap loans because they are private deals between borrowers and lenders. Also, this doesnt address the larger problem, which is the amount they would need to borrow (or get from selling off stocks) would be a tiny fraction in relation to their total wealth. Even it it were possible to legislate borrowing this way, it would still be a minuscule and disproportionate tax
I've long thought that capital gains should be taxed at the same rate as income--current long-term capital gains is 0%, 15%, or 20%, depending on your income (top income tax bracket is 37%). Does that mean a CEO who gets paid $1 a year income and shares of stock worth $100m pays the 0% capital gains tax rate?
Also, capital gains tax is paid when selling stock and is calculated on your basis; how would this change under Professor Madoff's proposal? Would this same CEO be taxed on the $100m of stock in the same tax year it was granted, regardless of whether it was bought or sold? Does bringing wealth into the income tax system negate the current capital gains tax?
One point made in the piece is maybe not super accurate, so I'm talking about it here. Tech workers started dressing in excessively casual ways at the office not because they were saying anything about "stealth wealth" (they were just normal-wealthy, at the time, at most, and only if they were very lucky), but because they were making a statement against traditional business norms. Tech was upsetting traditional business practices, and tech workers knew it. This (IMO) was also about arrogance, to an extent. They knew they could get away with being a little bit different, because tech skills were so valued.
I saw this in particular at a mutual funds company with a giant tech arm, where the tech workers were the only people allowed to wear jeans; everyone else had to wear suits.
(Source: me, I've spent multiple decades in the tech industry.)
Hi Anne! That’s such a great point and so true. Workers, however, are a somewhat different matter from their billionaire CEOS. You bring up a great point that these tech ultra wealthy may have begun dressing in this disruptive way- but their outfits never changed to match their outsized worth
Of course, the disparity of wealth in this country is a scary thing. But! I am so inspired by the decadent outfits from the wealthy wardrobe of generations passed…
I know right? they don’t make rich like that
This is why I love your podcast so much. “Fashion” is never just about the clothes!! Appreciated the very comprehensive overview of how the wealthy evade taxes. Now you got me wanting to read that tax book
Ahh thank you!!
Been listening to Articles of interest (thanks 99 PI!!) didn’t know there was a substack…so happy to see you here!
So interesting. That table of luxury vs mass clothing is extraordinary! Though synthetics and fossil derived textiles should be taxed more.
I am surprised that no one has mentioned Pratchett’s boot theory.
https://en.wikipedia.org/wiki/Boots_theory
Slightly backwards solution. Why not cap how much can be borrowed? Eventually Jeff will have to sell off some stock or assets & pay taxes on that income in order to purchase the next tiara, top hat or terrible company.
That is a really interesting thought! I was like huh! So I brought the idea to Professor Madoff. Sadly, this wouldn’t work to cap loans because they are private deals between borrowers and lenders. Also, this doesnt address the larger problem, which is the amount they would need to borrow (or get from selling off stocks) would be a tiny fraction in relation to their total wealth. Even it it were possible to legislate borrowing this way, it would still be a minuscule and disproportionate tax
I've long thought that capital gains should be taxed at the same rate as income--current long-term capital gains is 0%, 15%, or 20%, depending on your income (top income tax bracket is 37%). Does that mean a CEO who gets paid $1 a year income and shares of stock worth $100m pays the 0% capital gains tax rate?
Also, capital gains tax is paid when selling stock and is calculated on your basis; how would this change under Professor Madoff's proposal? Would this same CEO be taxed on the $100m of stock in the same tax year it was granted, regardless of whether it was bought or sold? Does bringing wealth into the income tax system negate the current capital gains tax?
Gotta say, the outfits of the tycoons of yore are also rather boring. They're all wearing the same hat, cravat, overcoat, etc.