Bezos holds nearly 912 million shares of Amazon stock
Bezos moves from Washington to Miami to avoid capital gains tax
Jeff Bezos sells $5 billion worth of Amazon stock
Washington state capital gains tax generates significant revenue but faces opposition
Jeff Bezos, the founder of Amazon and the world's second-richest person, has announced plans to sell a significant portion of his Amazon stock holdings. The sale comes after Bezos revealed in November 2021 that he was leaving Washington state for Miami, Florida. The move allows Bezos to avoid paying capital gains tax on the sale of his shares in Washington, where the tax rate is 7%, and save approximately $1 billion (Bernstein Research).
Bezos' decision to sell Amazon stock has been a topic of interest since he announced his move from Washington. According to regulatory filings, Bezos plans to sell 25 million shares worth about $5 billion. This follows an earlier sale of 50 million shares worth around $8.5 billion in the first half of the year (Geekwire).
The capital gains tax in Washington state went into effect in 2021 and generated approximately $786 million in its first year, exceeding initial projections. However, revenue from the tax dropped significantly to $433 million in its second year (Seattle Times). Initiative 2109, which aims to repeal the capital gains tax, qualified for the November ballot in Washington state.
Despite selling a substantial amount of Amazon stock this year, Bezos still holds nearly 912 million shares or about 8.8% of Amazon's outstanding stock as of February (Geekwire).
The debate over capital gains taxes and their impact on businesses and individuals continues to be a contentious issue in the United States. Some argue that high tax rates discourage investment, while others believe that the revenue generated from such taxes can be used to fund essential public services.
Jeff Bezos announced $1 billion in grants from the Bezos Earth Fund in September 2021.
Bezos plans to sell 25 million Amazon shares worth about $5 billion, after already selling 50 million shares worth around $8.5 billion earlier this year.
Moving to Miami allowed Bezos to save more than $600 million by avoiding Washington state’s capital gains tax.
Washington state’s capital gains tax went into effect in 2022 and generated $786 million in its first year, exceeding projections. In its second year, it generated $433 million from about the same number of returns.
Initiative 2109, which would repeal the capital gains tax, qualified for the November ballot in Washington state.
Bezos controlled about 10.8% of Amazon’s outstanding stock as of February and still holds nearly 912 million shares, or about 8.8% of Amazon after his latest sale.
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The author makes an appeal to authority by quoting economist Cristobal Young and stating that he published a study in 2016 that found most wealthy people don't move to avoid paying high taxes. However, the author also quotes Young from another study published in 2022 stating that 'conce pandemic restrictions arrived, households began questioning the value of living in expensive, high-tax states.' This creates a dichotomy and undermines the previous statement made by the author. The author also uses inflammatory rhetoric by stating that 'the implications for Washington are very real' and 'serve to illustrate just how dangerous it can be to design tax systems that rely so overwhelmingly on a very small number of taxpayers choosing to stay put.'
The author quotes economist Cristobal Young stating that most wealthy people don't move to avoid paying high taxes.
The author states that 'conce pandemic restrictions arrived, households began questioning the value of living in expensive, high-tax states.'
The author uses the phrase 'very real' and 'dangerous' to describe the implications for Washington.
