Re: FSF taking money from outsourcers

[Christopher Browne]

Stefaan A Eeckels <tengo@DELETEMEecc.lu> wrote:
> On 29 Apr 2004 17:52:40 GMT
> Christopher Browne <cbbrowne@acm.org> wrote:
>
>> Supposing I own a "holding company," which has income of $500K/year
>> coming in, and I can personally afford to live on $100K/year, then
>> I could avoid taxes on the $400K/year just about indefinitely by
>> not bothering to pay it out.
>
> But the value of the shares would go up commensurately, and this
> would also be taxed, requiring a payout so that the shareholders
> have the funds to pay their taxes. Plus you could have a fortune
> tax, like we have here in Luxembourg.

No, that would _not_ be taxed, unless someone sold their shares.

There is no taxable event in "the value of the shares going up."
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