The Allure of Gov't Jobs for Billionaires

Investment Analysis Clubs Macro Economic Trends and Risks
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{{ Special protections allow appointees to avoid paying taxes on gains from divesting in assets that pose a conflict, as long as they invest proceeds from a sale into “permissible property” like a Treasury bond or an approved diversified investment fund. It’s not a permanent pass on taxes: If they eventually sell those Treasury bonds, for example, they have to pay the taxes.

But the protections essentially give executives with stock concentrated in their own companies an opportunity for tax-free portfolio diversification. The former Goldman Sachs C.E.O. Hank Paulson, for example, famously had to sell around $700 million in the company’s stock when he took the job as Treasury secretary in the George W. Bush administration, and was able to do without paying capital gains taxes. Some wealthy executives may be able to borrow against those less risky investments and live on the loans without ever paying the taxes. }}

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I have come to the conclusion that people with a big stack, only see money as a means of keeping score. “My stack is bigger than your stack”. So, they look for ways to make the stack bigger, for the sake of bigger, not because they have any possible way of actually using that money for anything.

We Proles think of money in terms of house and car payments, and getting the spawn through college.

Steve

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