Putting a huge percentage of a company up for sale on the open market is going to tank the price no matter what the fundamentals are. It’s simple supply and demand: you’re putting a huge glut of supply on the market and not putting similar demand. All those sell orders will begin expiring as the offers drop in price.
The largest owner of shares putting everything on the market at once is strong signal that the stock is overpriced and so buyers will react accordingly.
By the way, TSLA has a P/E ratio in the 60’s so it’s not exactly a great deal anyway.
I’m neither defending nor attacking capitalism. I’m just pointing out that putting heavy taxes on illiquid assets leads to huge disruptions.
The increase in value of shares above book is called unrealized gains. They can be here today and gone tomorrow. Taxing makes no sense unless you’re going to reimburse the taxes if the shares drop in price.
Taxing profits just means the company will borrow from investors (by issuing bonds) and then instead of profits paying out as dividends the company shows losses from interest payments.
I would rather try land value taxes.