Those billionaires don’t sell their shares but they do take extremely low interest loans that are non-taxed against those shares kicking their tax obligations into future generations while using liquidity to live as if they’ve sold the shares.
So I’d suggest the tax code be amended to account for that.
That's also a reasonable suggestion. It wouldn't stop them from becoming billionaires. The GP suggested "every billionaire is a policy failure". What's the policy success that prevents this failure?
"No one is allowed to start a company by themselves"?
"No one is allowed to join a startup unless they get more than X% equity"?
"Startup founders must give more than X% equity to their first N employees and/or investors"?
"Bootstrapped startups are not allowed"?
"Once a startup becomes more successful than X, the founder must sell"?
Ah but you see, once you are ready for your estate to take the money you set up a granter retained annuity trust.
So long as you don’t die, and your trust earns more than the IRS theoretical rate you can pass on the money almost tax free. While still getting loans against it.
This is correct; GP mis-typed the income angle. Instead of taking loans as typed, the grantor retains the right to receive an annuity stream over the trust's term.
So I’d suggest the tax code be amended to account for that.