Home » Business » Epic Games' Tim Sweeney says Democrats' unrealized capitol gains tax on billionaires would crush entrepreneurs
Epic Games' Tim Sweeney says Democrats' unrealized capitol gains tax on billionaires would crush entrepreneurs
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Epic Games founder and CEO Tim Sweeney warned on Wednesday that the Democrats’ proposal that would tax billionaires on unrealized capital gains would hurt entrepreneurs.
"This tax bill would likely end founder control of lots of independent companies – perhaps including Epic Games," the billionaire tweeted.
He said the bill would tax "theoretical gains" based on a company’s market value increases, as opposed to "all American history" where capital gains were taxed when a person sells stock.
The proposal was drafted as a compromise by Senate Finance Committee Chairman Ron Wyden, D-Ore.
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"Every time a company’s value doubles, the government would force founders like me to sell 25% of our stake to pay the government," Sweeney added. "Epic’s value has doubled 8 times in the past 5 years. If this tax scheme had been place, I’d have been forced to liquidate nearly my entire ownership."
He called the bill "particularly horrid" for entrepreneurs because he said it doesn’t apply to shares held by hedge funds or corporate investors like Tencent and Sony, just "individual founders who hold shares personally."
"If the government forces founders to sell out to pay taxes on theoretical gains as companies grow, they’re handing control of private institutions like Epic Games to hedge funds and foreign investors," Sweeney said. "It’s the perfect way to deprive American companies of vision and leadership."