zlacker

Nope, your maths is not right, once your unrealised tax has been paid you don’t pay it every year in the same way you don’t keep paying capital gains on realised profits. Maybe read up on this before commenting.

>>andy_p+(OP)
That math is still pretty close to right for a growing company. Let's say you're the founder of a company with a market cap that makes it to ~$100B. To get from $100M to $100B, the value of the company has to double every year for ten years. So if the tax rate is 25%, for each year the price doubles you lose 12.5% of your shares.

By the end of ten years you have barely a quarter of what you started with. If that was 51%, it's now 13% and the MBAs come to ruin your company.