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paultimate14@lemmy.world 15 hours ago
- Taxing those outside investors too
- Taxing Valve as a corporation more, making them less profitable and less attractive to said investors.
- I’m not even convinced this would be an issue at all really. Remember Valve is not publicly traded. I suspect Gabe would hold on to controlling ownership as long as it was profitable, and remember that taxes are usually on profits.
- Even if outside investors move in and enshittify, the moment they start doing anticompetitive you hit them with antitrust suits. Not to mention the industry can also be regulated even before all this: a lot of governments are cracking down on lootboxes already.
hakase@lemmy.zip 14 hours ago
I don’t think this would solve the problem. Even if all of the outside investors are restricted to less than $1 billion in capital each, pooling their funds would easily be able to outweigh Gabe if he’s subject to the same restriction.
If we increase taxes on all companies across the board, the overall appeal of each individual corporation would likely stay about the same. In fact, since Steam is so profitable that might make them more appealing as an investment in a world where corporate taxes are much higher.
Corporate taxes are usually on profits, but in order to tax Gabe enough for him to no longer be a billionaire the vast majority of those taxes would have to come out of Gabe’s ownership in Valve. I’m not sure why you don’t think this would be an issue.
This seems pretty unrealistic/idealistic. I guess we are already positing an unrealistic world where billionaries are taxed out of existence, so imagining functioning regulation and antitrust suits isn’t that much more of a stretch. Still, that does seem to support my point that without significant other societal change taxing Gabe so much that he’s no longer a billionaire would likely significantly worsen Valve as a company.
I’m certainly not against taxing billionaires out of existence, but I still think that the question of what that would mean for corporate ownership is a difficult/complex one, and I don’t think your answers here really take that complexity into account.
paultimate14@lemmy.world 14 hours ago
Taxing billionaires is not some new and untested concept. In the US throughout the 1900’s the highest income tax brackets were often in the 70%'s, reaching into the 90%'s at times, and we did not see what you are suggesting.
Increasing the taxes on Gabe Newell’s profits from owning Valve would not suddenly cause him to lose money, just to gain less money. If corporate taxes and income taxes were increased across the board, then it is not as if he would benefit from selling Valve stock to invest elsewhere, and Valve would not be a more or less attractive place to invest relative to other options either. I am not sure why you think this would cause Gabe Newell to back out or investors to jump in. Heck, these rates have all changed pretty frequently within Valve’s existence and have not had a significant impact.
Also just to say, there is also the matter of jurisdiction as he lives in New Zealand while Valve is a US based company.
hakase@lemmy.zip 13 hours ago
We did not see what I’m suggesting because that’s an income tax, and in order to abolish billionaires we’d need a wealth tax.
Yes, but if you slow the income of a person who is already a billionaire, you get a billionaire who is still getting richer, only more slowly. This does not get rid of billionaires.
In order to take someone who is already a multibillionaire and make them not a billionaire, you have to take away property that they already own. In the case of Gabe, since most of his wealth is tied up in Valve stock, in order to make him not a billionaire you’d need to make him sell stock in Valve, which would dilute his ownership and control over the company.
Do you understand the problem now?
paultimate14@lemmy.world 12 hours ago
You’re just proposing a much more drastic and rapid change than I am. I agree that a wealth tax would be a more immediate effect. It is also much more drsstixnand far less tested. The idea is interesting and I am neither opposed to it nor calling for it. I do not think it it necessary.
Increasing income tax rates and corporate tax rates would be a much slower approach. I didn’t mention them, but I would also add in property tax rates and capital gains. Luxury sales taxes, inheritancd taxes. In the US, make OASDI a progressive instead of regressive tax.
For existing billionaires, there are plenty of laws they’ve already broken to get where they are that just need to be enforced. Wage theft, antitrust, union busting, fraud. The SEC should have buried Musk in a dungeon years ago. So I see the answer to eliminating existing wealth being fines rather than taxes.
Of course, there is also room to increase the minimum wage and minimum benefits. That would hell redistribute wealth too.
I don’t know Gabe Newell, or even anyone who works at Valve personally, but every account I have ever read about Valve is that they usually treated and paid their employees well. Investigate all of these megacorps and prosecute appropriately.