Many actually don’t, they don’t convert (much) the capital to money, so they avoid capital gain-tax (which tends to have exception for business owner and long term holder), often they use company asset (like an average worker gets a phone, a laptop and sometimes a car, but they get a boat, a jet, and a nice house on the company budget), borrow money against stock, and actually don’t need that much of their actual money (remember that a billion is huge we don’t talk about getting a nice house, and a private jet, but multiple airliner, and a brand-new top notch hospital in the centre of an expensive city, including all worker wage for a while).
This is why so many people support a net worth tax like if you pay less than 2% of your net worth in regular tax, then you get an extra tax to reach these 2%
It should also be binding that if you declare that your assets are worth a certain value, the government has the option to buy the asset at that value, to avoid people under representing their net worth for unrealized gains.
Many actually don’t, they don’t convert (much) the capital to money, so they avoid capital gain-tax (which tends to have exception for business owner and long term holder), often they use company asset (like an average worker gets a phone, a laptop and sometimes a car, but they get a boat, a jet, and a nice house on the company budget), borrow money against stock, and actually don’t need that much of their actual money (remember that a billion is huge we don’t talk about getting a nice house, and a private jet, but multiple airliner, and a brand-new top notch hospital in the centre of an expensive city, including all worker wage for a while).
This is why so many people support a net worth tax like if you pay less than 2% of your net worth in regular tax, then you get an extra tax to reach these 2%
It should also be binding that if you declare that your assets are worth a certain value, the government has the option to buy the asset at that value, to avoid people under representing their net worth for unrealized gains.