The CEO from Roblox, David Baszucki, ended up in the spotlight for exploiting a law designed for small businesses in order to pay less taxes. A rule for small companies, however, applied to a company that is currently worth 60 billion dollars.
A few days ago the news came that Roblox beat Activision Blizzard, becoming the most valuable company in video games, and it is therefore doubly absurd that the CEO of such an important reality feels the need to use quibbles, however legal, in order to lighten the sums to be allocated to the tax authorities.
The law in question is called Qualified Small Business Stock and it entered into force in 1993. At the time, the legislator’s goal was to allow more people to invest in start-ups, shielding certain figures with respect to taxation.
Unfortunately, over the years the law has been used for decidedly less noble purposes, also because it was poorly written and it is even possible clone it up to twelve times, thus passing the exemption to their relatives and friends.
Attempts have been made to try to modify the Qualified Small Business Stock, which has cost something like 60 billion dollars to the US tax authorities, and recently the Biden administration suggested cutting the exemption by more than half.
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