This is a great point but has me realizing I don't know how to square this with the idea that quite a few people are making enormous profits from unprofitable businesses.
It feels like there should be a way to tax these startups that exist as vehicles for cash grabs, but are not profitable.
Do you have examples of people making enormous profits you are thinking of?
If you literally mean people (as in employees, executives, ect), they already are being taxed on income.
Unprofitable businesses always have expenses for labor, materials, ect. The distinction is that the company and owners arent making money, so they dont pay taxes. Those that do make money naturally do pay taxes.
It feels like there should be a way to tax these startups that exist as vehicles for cash grabs, but are not profitable.