Ken Griffin certainly seems to be quite violently against higher taxes. In fact, his position is much more nuanced: he is simply against higher taxes on himself. This explains why he fights so fiercely against Jay Pritzker's efforts to drag this state's income tax system into the 19th century, since Illinois currently has a constitutionally required flat rate income tax has: Ken Griffin, the richest man in Illinois whose fortune soared. At $ 2.3 billion last year, he pays exactly the same proportion of his income as a plumber in Moline or a farmer outside Mattoon. It explains why he lays the foundations for working like Carl Icahn and moving to Florida with no income tax. And it explains why he's so strongly against having the money that makes his money be taxed on something like the money made by actual work is taxed.
The Citadel founder made it clear that he is not a hardliner and supports certain tax increases to counter the current radical deficit of the federal government.
"I would have a lower capital gain rate and companies pay corporate taxes," Griffin Tudor Jones said at the private event. Investors would continue to pay indirectly, since shareholders in the company are burdened with a tax burden, he emphasized.
This, of course, is not pure selfishness on the part of a man who has bought more than a billion dollars worth of houses and apartments in recent years. It's patriotism.
Eliminating the low long-term capital gain interest rate that many professional investors pay in lieu of regular income tax would harm America itself, Griffin said. "We will see that liquidity is lower, multiple times lower, the cost of capital is higher, and fewer jobs are created," Griffin predicted, when investor profits are simply counted as income. “Several years of headwinds? Absolutely. When taxes are 39 percent, you are not going to sell your winners. They stay in these positions longer than usual. This means that less capital flows from these companies to the next new idea. This is heartbreaking. Part of the reason the US economy works so damn well is that we are continually shifting our capital as a nation to the next new idea … It's the mobility of capital in our system that makes it possible. "
And how exactly would that manifest? Well, um, not really at all, but please don't do it anyway.
Should a new US administration change that tax code, "stock prices will be lower, but not as much lower than you think, because so much of the stock market is owned by non-tax-paying players – pension funds, state wealth funds, and other institutions." . "
And certainly don't raise his taxes even indirectly to help those who are actually suffering the effects of a global pandemic, except in ways that benefit him directly.
But Tudor Jones' proposal to provide more economic stimulus, perhaps another round of spike in unemployment, made Griffin hesitate. He'd like to pay to get Americans back to work – but not to stop them … "We can't let the skills of American workers deteriorate. We want people back into the workforce as soon as possible to protect their future streams of income. I believe you and I would both be instantly incentivized to do so. "
Nice try, Paul: you may do your best to keep yourself and your friends off this march, but Ken Griffin would prefer not to live in a world where capital pays more taxes than the people who do actually work, however few they might be there.
In leaked remarks among hedge fund managers, Ken Griffin of Citadel opens taxes [II]