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<keyword id="19898109" type="General" weightage="100" keywordseo="Paytm" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm" meta.hostid="261" meta.entityid="Paytm">Paytm</keyword>'s parent company, <keyword id="20253123" type="General" weightage="20" keywordseo="One97-Communications" source="keywords" meta.keywordsubtype="org" meta.entityname="One97 Communications" meta.hostid="261" meta.entityid="One97 Communications">One97 Communications</keyword>, declared its Q2FY25 results today, announcing a one-time, exceptional profit of Rs 1,345 crore during the quarter, thanks to the sale of its entertainment ticketing business. The company's PAT (profit after tax) stood at Rs 930 crore. Notably, without this windfall gain, Paytm's finances would still be in red, with the company racking up losses worth Rs 415 crore. Paytm was in red in the year-ago period as well, incurring losses worth Rs 290.5 crore. This windfall profit also improved Paytm's EBITDA by Rs 388 crore on a QoQ basis. The company's revenue also saw a slight uptick of 10.5% quarterly to Rs 1,659 crore, as opposed to Rs 1,501 crore in the previous quarter. But on a year-on-year basis, Paytm's revenue dipped significantly by 34%. The company also announced that it has entered into a DLG (<keyword id="23641220" type="General" weightage="20" keywordseo="Default-Loss-Guarantee" source="keywords">default loss guarantee</keyword>) model for its merchant loans of about Rs 225 crore with SMFG India Credit. Under this arrangement, Paytm will be first in line to take a hit in case of a loss that emerges from borrowers defaulting or skipping their payments. "Following the regulatory framework and the emerging market practice, we see increased willingness from lenders to partner and allocate more capital in the default loss. The DLG model will help to increase disbursements with the existing partners and expand partnerships with new lenders for the loan distribution,” said the company in its earnings release today. The company's revenue from its payment business also inched up 9% on a quarterly basis, along with its revenue from <keyword id="19976433" type="General" weightage="20" keywordseo="financial-services" source="keywords">financial services</keyword>, which also grew by 34% QoQ. At present, Paytm's total merchant subscriptions stand at 1.12 crore, with the company garnering 3 lakh new merchants during the quarter. During the previous quarter, Paytm's <keyword id="20253122" type="General" weightage="20" keywordseo="gross-merchandise-value" source="keywords">gross merchandise value</keyword> (GMV) also inched up by 5% on a sequential basis, which experts anticipate will continue in the coming quarters, just as India braces for the festive season. Per its release, Paytm aims to achieve <keyword id="23641219" type="General" weightage="20" keywordseo="EBITDA-profitability" source="keywords">EBITDA profitability</keyword> (before ESOPs) by the fourth quarter of this financial year. However, investors remained unimpressed with Paytm's performance, with its share slipping by around 3.96% during the day to trade at Rs 697.20. The stock has a YTD (yield-to-date) of 7.91% during the year.

Paytm declares Q2 results, earns Rs 930 crore as windfall gains by way of sale of ticketing business to Zomato

<ul class="summary-list"><li>Adobe is facing allegations from the FTC that it hid cancellation fees from customers. </li><li>Affinity and Linearity are some alternative apps that are gaining popularity.</li></ul>As Adobe reels from a lawsuit accusing it of hiding early termination fees, its competitors may be seizing the golden opportunity to cash in.On Monday, the <a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/06/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling?utm_source=govdelivery">Federal Trade Commission sued Adobe</a>, alleging that it deceived consumers by "hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions."The lawsuit comes as Adobe faces a firestorm of <a target="_blank" href="https://www.businessinsider.in/business/corporates/news/why-are-so-many-creators-talking-about-moving-away-from-adobe-and-photoshop/articleshow/110931424.cms">criticism from creatives</a> over some of its terms of service. A vaguely worded notice from Adobe hinted that the software <a target="_blank" href="https://www.businessinsider.com/adobe-employees-slam-company-over-ai-controversy-2024-6">may be looking to use creators' content to train AI models</a>. Adobe then published a June 6 <a target="_blank" href="https://blog.adobe.com/en/publish/2024/06/06/clarification-adobe-terms-of-use">blog post</a> clarifying that it "does not train Firefly Gen AI models on customer content."Creative software like Linearity and Affinity, which boast similar capabilities, have slashed prices on their services in what appears to be a gambit to entice Adobe's disgruntled customer base.Linearity, a vector-based app similar to Adobe's Illustrator, did not disguise its intention to get customers to switch apps.As part of its <a target="_blank" href="https://www.linearity.io/switchnow/">limited-time promotion</a>, new users can subscribe to Linearity Pro for $59 for their first year. They can use the code "SWITCH59" at checkout to unlock the discount.Linearity's website reads: "Why choose Linearity Curve over Adobe Illustrator? No hidden AI, machine learning training, or ownership over your creations."Graphic design and photo editing software Affinity, recently acquired by Canva, is offering a half-off discount on its Photo, Designer, and Publisher services and all its add-ons.Affinity's <a target="_blank" href="https://x.com/affinitybyserif/status/1801617061342273878">post on X on Friday</a> subtly urges people to switch to their software: "Whether you're switching from other software or new to photo editing and digital design, there are tons of resources to help you get the most out of Affinity."Inkscape, a free, open-source software similar in function to Illustrator, took a subtle swipe at Adobe in a June 9 <a target="_blank" href="https://x.com/inkscape/status/1799522324883853505/photo/1">X post</a>."We can't believe we need to say this, but… your files are yours," its caption read. "The <a target="_blank" class="css-1jxf684 r-bcqeeo r-1ttztb7 r-qvutc0 r-poiln3 r-1loqt21" href="https://x.com/hashtag/Inkscape?src=hashtag_click">#Inkscape</a> project will never peek at your files, and what's yours stays on your computer."And some users seem desperate to make the switch, with creatives on TikTok and X sharing <a target="_blank" href="https://x.com/DesignJunkie010/status/1799965456885014866">extensive lists of alternatives</a> to Adobe's apps.Others have posted screenshots showing themselves canceling their Adobe subscriptions and switching to other software.<a target="_blank" href="https://x.com/crosstalksol/status/1801045810534105361">One user on X wrote</a>, " Bye-bye, @Adobe! Your MRC subscription and shady contract terms won't be missed."The user, who said they used to work on Premiere Pro, added on Thursday that they "fully switched" to video editing software Davinci Resolve six months ago. They have now bought a "one-time $82.00 license for Affinity's suite to replace Photoshop."Representatives for Adobe, Linearity and Affinity didn't immediately respond to a request for comment from Business Insider, made outside normal working hours.

Adobe's misfortune may be a windfall for these 2 up-and-coming art apps      

<ul class="summary-list"><li>Reddit plans to go public later this month at a targeted share price of $31 to $34.</li><li>Sam Altman, the CEO of OpenAI, has a sizable stake in the company.</li></ul><a target="_blank" href="https://www.businessinsider.com/reddit-ipo-valuation-price-range-sec-wallstreetbets-meme-stocks-2021-2024-3">Reddit, which is set to go public</a> later this month, announced its target share pricing on Monday — and <a target="_blank" href="https://www.businessinsider.com/the-scope-of-sam-altmans-future-ai-empire-open-ai-2024-3">Sam Altman</a> stands to reap a sizable windfall.While his personal shares aren't worth the nearly half a billion dollars that has been reported, they do amount to a fortune.Business Insider estimates that the <a target="_blank" href="https://www.businessinsider.com/sam-altman-chatgpt-openai-ceo-career-net-worth-ycombinator-prepper-2023-1">OpenAI CEO</a> owns a maximum of just about 1.66 million shares of Reddit. With the company's estimated price per share at $31 to $34, <a target="_blank" href="https://www.businessinsider.com/sam-altman-investory-reddit-stock-worth-value">Altman's stake in Reddit</a> could be worth between $51.4 million and $56.4 million.Neither Reddit nor Altman would comment on the exact number of shares that Altman owned.Altman has several ties to <a target="_blank" href="https://www.businessinsider.com/reddit-ipo-shares-loyal-users-ai-steve-huffman-sam-altman-2024-2">Reddit</a>: He served on its board, had an eight-day stint as its CEO, and has invested in the company through five of his investment vehicles.The company's S-1 says "entities affiliated with Sam Altman" own an 8.7% stake in the company, made up of 789,456 class A shares and 11,369,103 class B shares.News outlets, including BI, were quick to say that Altman owned all these shares when Reddit filed an earlier version of its S-1 in late February. But the truth is far more complicated.The company's registration statement says Altman "disclaims beneficial ownership of these shares except to the extent of his respective pecuniary interest therein."Basically, just because the shares are affiliated with Altman doesn't mean they are his. Instead, they belong to his various funds, such as Hydrazine Capital II, a venture-capital fund, and Apollo Projects SPV-B, a special-purpose vehicle.For instance, Hydrazine Capital II owns nearly 9.9 million shares of Reddit. But the fund's disclosure form indicates that Altman owns, at most, 5% of these shares — or about 500,000 — with the rest presumably belonging to the fund's limited partners, whose identities are unknown.Applying this method to all of Altman's investment vehicles with ties to Reddit finds that Altman, the individual, owns as much as 1.66 million shares in the company.His ties to Reddit point to Altman's long history as an investor.While he's best known as the <a target="_blank" href="https://www.businessinsider.com/sam-altman-openai-staff-loyalty-power-chatgpt-microsoft-2023-11">CEO of ChatGPT's maker, OpenAI</a>, Altman poured both his own money and that of at least one Silicon Valley power broker (<a target="_blank" href="https://www.businessinsider.com/who-is-peter-thiel-svb-facebook-trump-biography-2023-3">Peter Thiel</a> is reportedly the backer of one of his VC funds) into everything from a <a target="_blank" href="https://www.businessinsider.com/helion-energy-fusion-company-backed-by-sam-altman-and-microsoft-2023-5">nuclear-fusion company</a> to a bioscience upstart looking to delay death.He has made over 155 investments since 2010, according to PitchBook data, and announced his investment in Reddit in 2014."I have been a daily reddit user for 9 years — longer than pretty much any other service I still use besides Facebook, Google, and Amazon," Altman wrote on his <a target="_blank" href="https://blog.samaltman.com/reddit">blog</a>. "I was probably in the first dozen people to use the site, and I shudder to imagine the number of hours I have spent there."

How much Sam Altman stands to gain from a Reddit IPO

New Delhi, Feb 7 () The Centre on Friday told Parliament that private insurance companies have not made "windfall gains" under the Pradhan Mantri Fasal Bima Yojana (PMFBY) as the overall claim ratio between 2016-17 and 2018-19 was as high as 81 per cent. Agriculture Minister Narendra Singh Tomar, in his written reply to the Rajya Sabha, also made it clear that the difference between premium collected and claims paid is not the margin or profit for these firms. The reinsurance and administrative cost totalling 10 to 12 per cent of gross premium also has to be borne by the insurance companies. The government is implementing two crop insurance schemes of the PMFBY and the Restructured Weather Based Crop Insurance Scheme (RWBCIS). According to provisions of the PMFBY and the RWBCIS, the minister said premium from farmers along with central and state government share in premium subsidy is paid to the concerned insurance company for acceptance of risk and payment of claims as per provision of scheme. "Insurers save premium in good seasons/years and pay high claims, if any in bad years from the savings made in the good years," he said adding that crop is all about spreading the risk over the period and over the area. In spite of overall good monsoon during first three years of the implementation of PMFBY, the claim ratio during 2016-17, 2017-18 and 2018-19 was about 77 per cent, 86 per cent and 80 per cent (provisional), respectively, he said. Tomar further said that overall claim ratio for the three years combined (2016-17, 2017-18 and 2018-19) comes to about 81 per cent. "But, the farmers in most affected areas/states received higher claims." "Hence, it is not correct to say that private insurance companies have made windfall gains under the Pradhan Mantri Fasal Bima Yojana (PMFBY)," the minister said. In this regard, it is also informed that the difference between premium collected and claims paid is not the margin or profit for the insurance companies, he said. The reinsurance and administrative cost totalling 10 to 12 per cent of gross premium also has to be borne by the insurance companies. Further, out of the total crop insurance business under the scheme, more than 50 per cent is shared by the 5 public sector insurance companies including Agriculture Insurance Company of India Ltd. (AIC), he added. Placing the data before the Upper House, Tomar said the claim ratio was high at 209 per cent in Kerala, 136 per cent in Karnataka during kharif 2016, while the claim ratio was at 298 per cent in Tamil Nadu and 179 per cent in Andhra Pradesh during rabi 2016-17. Similarly, during kharif 2017, the higher claim ratio was in the states of Chhattisgarh (452 per cent), Haryana (270 per cent), Madhya Pradesh (161 per cent) and Odisha (217 per cent). During the rabi 2017-18, high claim ratio states were Odisha (226 per cent), Tamil Nadu (148 per cent) and Chhattisgarh (109 per cent), he said. Though complete data for the kharif 2018 season is not available, high claims ratio has been reported in states of Haryana (140 per cent), Uttarakhand (115 per cent) and Chhattisgarh (124 per cent), he added. To a query if farmers are indifferent towards PMFBY, the minister replied in negative. "No, sir." Due to the improved features of PMFBY, the minister said the coverage under the scheme has increased to 30 per cent of the gross cropped area from 23 per cent in 2015-16 under erstwhile schemes. Participation of non-loanee farmers, for whom the scheme is voluntary, have also increased from 5 per cent under erstwhile schemes to 42 per cent (kharif 2019) under PMFBY showing the voluntary acceptability of the scheme, he said. LUX HRS

No windfall gains to private insurers under PMFBY: Centre

<ul class="summary-list"><li>A new report from research firm Wealth-X found that the number of global <keyword id="11940268" type="UNKNOWN" weightage="60" keywordseo="billionaires" source="Orion">billionaires</keyword> rose above 3,000 in 2020.</li><li>It's a first, per the report, with billionaires around the world increasing their collective wealth by 5.7%.</li><li><keyword id="12136586" type="UNKNOWN" weightage="60" keywordseo="wealth-taxes" source="Orion">Wealth taxes</keyword> have been floated as one way to redistribute wealth and address pandemic inequity.</li></ul>The pandemic was a boon for billionaires. It grew their collective wealth and helped more people join their ranks. For the first time, the world has more than 3,000 billionaires, according to <a href="https://www.wealthx.com/about-us/press-news/2021/global-billionaire-population-surged-by-13-4-in-2020/">a new report</a> from research firm Wealth-X. That's a 13.4% increase since 2019. Their total wealth swelled to $10 trillion - a 5.7% increase in net worth. "Viewed in aggregate, the global pandemic delivered a windfall to <keyword id="12136587" type="UNKNOWN" weightage="60" keywordseo="billionaire" source="Orion">billionaire</keyword> wealth, boosted by the flood of monetary stimulus and swelling profits in key sectors that coined a new wave of younger, self-made billionaires," the report said.But not all billionaire wealth was created equal, with those who find their fortunes in pandemic-stricken industries like travel and entertainment not benefiting as much as those in sectors like technology. Even so, the uneven wealth gains came as workers <a href="https://www.businessinsider.com/workers-lost-37-trillion-in-earnings-during-the-pandemic-2021-1">around the world</a> lost $3.7 trillion in earnings during the pandemic, according to a <a href="https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_766949/lang--en/index.htm">report from the International Labour Organization</a> (ILO). In the US alone, poverty ticked up by 1% from 2019 to 2020, according to the <a href="https://www.census.gov/newsroom/press-releases/2021/income-poverty-health-insurance-coverage.html">US Census Bureau</a>, and median household income dropped by 2.9%. North America cemented its status as "the world's leading billionaire region in 2020," with the three-comma club there growing by 17.5% from the year prior. In fact, North America's 980 billionaires account for 30.6% of the world's billionaires. The US was the top billionaire country in 2020.When it came to growing the ranks of billionaires, Asia followed close behind North America, with the number of billionaires growing by 16.5%, for a grand total of of 883. Asia's billionaires saw their collective net worths growth to $2.6 trillion - a 7.5% increase.<h2>Those gains come amid growing calls to tax the rich and address <keyword id="11893571" type="UNKNOWN" weightage="60" keywordseo="inequality" source="Orion">inequality</keyword></h2>The report attributes the ongoing and ever-growing wealth divide as one contributing factor in increasing unrest across the world."As the global <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword> gradually emerges from the crisis, the issue of widening inequality may well spur more concerted redistributive <keyword id="11896048" type="UNKNOWN" weightage="60" keywordseo="policy" source="Orion">policy</keyword> efforts in areas such as tax and regulation," the report said.One prominent critic of the monumental wealth gains by billionaires has emerged: President Joe Biden. "Billionaires have seen their wealth go up by $1.8 trillion," Biden said in a recent speech, referencing <a href="https://inequality.org/great-divide/updates-billionaire-pandemic/">a report</a> from the left-leaning Americans for Tax Fairness and the Institute for Policy Studies tracking gains by American billionaires (their net worths leapt by 62% during the pandemic, according to the report). Biden said: "It's simply not fair." A <keyword id="12100837" type="UNKNOWN" weightage="60" keywordseo="wealth-tax" source="Orion">wealth tax</keyword> has consistently been floated as one way to address pandemic inequity and bolster economies. The International Monetary Fund <a href="https://www.businessinsider.com/wealth-tax-corporate-tax-support-stimulus-economic-recoveries-coronavirus-imf-2021-4">has said</a> a temporary tax on the wealthy could help aid pandemic recovery; Argentina went a step further and instituted a one-off hike on its wealthiest residents, <a href="https://www.businessinsider.com/one-time-wealth-tax-in-argentina-brought-in-24-billion-2021-5">raising $2.4 billion</a>. A <a href="https://ips-dc.org/global-billionaires-see-5-5-trillion-pandemic-wealth-surge/">report</a> from Oxfam, the Fight Inequality Alliance, and the left-leaning Institute for Policy Studies and Patriotic Millionaires <a href="https://www.businessinsider.com/one-time-99-wealth-tax-on-billionaires-could-vaccinate-world-2021-8">found</a> that a one-time 99% wealth tax on the world's billionaires could raise more than enough to vaccinate the world.In the US, House Democrats <a href="https://www.businessinsider.com/house-democrats-raise-corporate-tax-rate-wealthy-americans-surtax-2021-9">have proposed</a> a new tax plan that would unwind some Trump-era tax cuts and hike rates on large corporations, assets like stocks, and Americans earning over $5 million. However, the 3% "surtax" on Americans who earn over $5 million still falls short of an outright wealth tax, Insider's Ben Winck and Ayelet Sheffey <a href="https://www.businessinsider.com/democrats-tax-rich-plan-wealth-billionaires-sanders-warren-manchin-senate-2021-9">report</a> - a measure that's overwhelmingly popular.

The number of billionaires grew by 13.4% in 2020 - making the pandemic a 'windfall to billionaire wealth'

<ul class="summary-list"><li><keyword id="11897862" type="UNKNOWN" weightage="60" keywordseo="elon-musk" source="Orion">Elon Musk</keyword>'s planned sale of 10% of his <keyword id="11900744" type="UNKNOWN" weightage="60" keywordseo="tesla" source="Orion">Tesla</keyword> shares is triggering a massive tax liability.</li><li>In moving to <keyword id="11896956" type="UNKNOWN" weightage="60" keywordseo="texas" source="Orion">Texas</keyword>, Insider calculates that he could carve $2.5 billion off the final bill.</li></ul>Elon Musk has made no secret of his desire to get out of <keyword id="11892889" type="UNKNOWN" weightage="60" keywordseo="california" source="Orion">California</keyword>."Will own no house," he <a href="https://twitter.com/elonmusk/status/1256239554148724737?lang=en">tweeted</a> on May 1, 2020, before embarking on a selling spree to rid himself of several mansions in the Golden State. His destination: a <a href="https://www.businessinsider.com/elon-musk-tiny-home-prefab-boxabl-casita-50000-person-waitlist-2021-8">$50,000 pre-fab tiny home in Texas</a>. Earlier this year, he also moved his company Tesla from the west coast <a href="https://www.businessinsider.com/elon-musk-tesla-headquarters-austin-texas-2021-10">to the Lone Star state</a>.He has even lent money to at least five buyers who used the funds to purchase his properties in the state from him, according to property records viewed by Bloomberg.One likely reason for the urgency is a looming tax liability following the <a href="https://markets.businessinsider.com/news/stocks/elon-musk-tesla-stock-sales-twitter-poll-target-taxes-options-2021-11">sale of 10% of his Tesla shares</a> – a move that he appeared to put to a vote on Twitter, but in reality had previously committed to in an SEC filing.In financial and tax accounting, everything revolves around timing, and Musk needs to show that he has sufficiently exited California to avoid incurring a massive bill from the state on the <keyword id="12161417" type="UNKNOWN" weightage="60" keywordseo="capital-gains" source="Orion">capital gains</keyword> from his Tesla stock.Musk notably <a href="https://www.businessinsider.com/elon-musk-tesla-salary-dropped-zero-2020-pay-electric-vehicles-2021-8">does not take a salary</a> for his work for Tesla, instead taking out loans against his roughly $300 billion fortune to live off of and avoid paying income tax. This year's stock sales are widely believed to be necessary to pay off some of those loans and take advantage of certain stock options that will expire next year.Most of Musk's current shares are subject to a 23.8% tax by the IRS on the amount of the value they increased since he obtained them, which is nearly the full current value given the stock's extraordinary rise in recent years.Ordinarily, California would charge an additional 13.3%, but Musk can avoid this if he completes his move in time. In order to be exempt from taxation under <a href="https://www.ftb.ca.gov/forms/2020/2020-1031-publication.pdf">California tax board rules</a>, Musk must show that he will "remain in the new locality permanently or indefinitely."According to an <a href="https://www.sec.gov/Archives/edgar/data/0001318605/000156459021045926/tsla-def14a_20210826.htm#OUTSTING_EQUITY_AWARDS_AT_2019_FISCAL_YE">August SEC filing from Tesla</a>, Musk owns about 170 million shares of the electric automaker. Selling 10% of his hoard — about 17 million shares — at the company's stock price of about $1,130 a share as of midmorning Tuesday would produce a windfall in the neighborhood of $19.2 billion. California's 13.3% cut, then, would be around $2.5 billion.Texas has no income tax or capital gains tax on individuals. So far, <a href="https://www.bloomberg.com/news/articles/2021-11-29/how-much-tax-does-elon-musk-save-by-moving-to-texas-and-selling-tesla-stock">Bloomberg estimates</a>, the strategy has likely saved him about $500 million.Cristobal Young, a sociology professor at Cornell University who studies <keyword id="11898253" type="UNKNOWN" weightage="60" keywordseo="taxes" source="Orion">taxes</keyword> on the rich, told Bloomberg that it won't matter that nearly all the gains occurred while Musk was a California resident — all that matters is when the stock sales are recorded.Musk is "basically shirking his tax responsibilities," Young said. "California provided access to the talent he needed to build the company.""That's a complex analysis," tax attorney Christopher Manes told Bloomberg. "If he's claiming he's a nonresident, obviously California has an incentive to audit him and find out."Musk did not respond to Insider's request for comment on this story.<a href="https://www.bloomberg.com/news/articles/2021-11-29/how-much-tax-does-elon-musk-save-by-moving-to-texas-and-selling-tesla-stock">Read the full story from Bloomberg.</a>

Elon Musk has a $2.5 billion reason to move to Texas: avoiding California capital gains tax

<ul class="summary-list"><li><keyword id="11897862" type="UNKNOWN" weightage="60" keywordseo="elon-musk" source="Orion">Elon Musk</keyword> railed against Democrats' "<keyword id="11940268" type="UNKNOWN" weightage="60" keywordseo="billionaires" source="Orion">billionaires</keyword>' tax" proposal, but it would still leave him as the world's richest person.</li><li>Musk warned the government could "come for you" when it runs out of cash, but the US has spent more than it taxes for decades.</li></ul>Elon Musk this week critiqued Democrats' latest plans to tax billionaires to pay for their social spending plans, saying <a href="https://twitter.com/elonmusk/status/1452792781726961668">on Twitter</a>, "Eventually, they run out of other people's money and then they come for you."But who are the "other people" and the "you" here? For the majority of Americans, <keyword id="11898254" type="UNKNOWN" weightage="60" keywordseo="income-taxes" source="Orion">income taxes</keyword> have long been a reality, making up nearly half of the money collected by the US government. America's wealthiest, on the other hand, have largely paid a lower rate of taxes by seeing their wealth accumulate in the form of asset worth, not an annual salary. Musk's argument plays on illogical fears that lawmakers will target everyday Americans next, when the reality is that after the rich have used loopholes for decades, some of those are starting to close.<h2>The wealthiest pay less in taxes</h2>The US has used a progressive tax system since 1862.Tax brackets and top rates have changed over time as Americans earned more, but the top rates have grown ineffective from an explosion of loopholes. The plan from Sen. Ron Wyden of Oregon doesn't mark a new era of strict taxation, it just forces billionaires to pay tax on their biggest source of income: soaring stocks.The world's richest man <a href="https://www.businessinsider.com/elon-musk-democrats-billionaire-tax-plan-annual-tax-bill-2021-10">ripped into the tax proposal</a> on Monday, saying it unfairly shifted wealth away from America's richest citizens. The issue comes down to "who is best at capital allocation - governments or entrepreneurs," Musk wrote in one of several <a href="https://twitter.com/elonmusk/status/1452823303186526210">tweets</a> on tax policy. Yet the richest Americans have long paid a smaller share of their income than those who earn far less. Many billionaires shield their wealth by taking a relatively low salary and placing most of their net worth in assets like stocks, which are only taxed when they are sold and the profit is locked in, or "realized." But billionaires often hold stocks throughout their lives and pass them on after death, leaving the majority of their net worth completely untaxed, while using their wealth to get ultra-cheap loans from banks where they park their assets.Musk, for example, saw a <a href="https://www.businessinsider.com/how-much-elon-musk-could-owe-under-democratic-income-tax-2021-10?cx_testId=10&amp;cx_testVariant=cx_undefined&amp;cx_artPos=0&amp;post-bottom-piano-recommendations#cxrecs_sons#cxrecs_s">$37 billion spike</a> in his net worth on Monday when Tesla's stock price surged nearly 13%. Under the current system, he isn't required to pay taxes on any of those gains.Wyden's proposal would levy the usual 23.8% <keyword id="12087071" type="UNKNOWN" weightage="60" keywordseo="capital-gains-tax" source="Orion">capital gains tax</keyword> on the increased value of unsold assets, meaning <a href="https://www.businessinsider.com/what-billionaires-owe-under-democrats-tax-plan-elon-musk-2021-10">billionaires like Musk, Jeff Bezos, and Bill Gates</a> would have to pay taxes on their massive stock profits. For Musk, the initial bill on his stock gains would amount to roughly $50 billion, according to an analysis by Gabriel Zucman, a left-leaning economist at the University of California Berkeley. Wyden's proposal would allow Musk to pay that sum over a five-year period.That would mark a stark change from the tax rates billionaires have paid for several years. Analysis of IRS tax return data published by ProPublica in June showed some of the richest Americans - including Musk - paying nothing in income taxes for a handful of years. Musk in particular paid $455 million in taxes from 2014 to 2018, just 3.27% of his wealth, according to the report.If the tax becomes law, Musk would remain the world's richest man by a healthy margin, at a net worth of roughly $202 billion, as of Tuesday's market close. Bezos would be the second-wealthiest American with a net worth of about $149 billion.Musk's Monday stock windfall would still be worth more than most Americans make in their lives. A 23.8% tax on the jump would turn the $37 billion profit into a $28.2 billion gain.If that sum made up Musk's entire net worth, he'd still be wealthier than 99.5% of Americans.

In one day, Elon Musk made $37 billion and slammed Democrats' plan to tax billionaires. Here's what he meant when he said the government will 'come for you.'

<ul class="summary-list"><li><keyword id="1972612" type="PERSON" weightage="60" keywordseo="Coinbase">Coinbase</keyword> founder <keyword id="4875827" type="PERSON" weightage="60" keywordseo="brian-armstrong">Brian Armstrong</keyword> is set for a hefty payday as his company speeds toward a direct stock listing. </li><li>According to Bloomberg calculations, his stock options could total a $3 billion windfall. </li><li>Considered a bellwether for the cryptocurrency industry, Coinbase's public listing could give legitimacy to the movement. </li></ul>Coinbase's surge in popularity amid a boom in <keyword id="2420795" type="PERSON" weightage="60" keywordseo="cryptocurrencies">cryptocurrencies</keyword> has helped mint founder and CEO Brian Armstrong as one of the newest Silicon Valley ultra-rich.Amstrong is set to reap a potential $3 billion windfall from the <a href="https://www.businessinsider.com/details-from-coinbase-s-1-filing-2021-2">digital currency exchange's direct listing</a> as a trend of <a href="https://www.businessinsider.com/the-people-that-benefit-most-when-palantir-goes-public-2020-8">mega grants to tech founders</a> continues full steam ahead, <a href="https://www.bloomberg.com/news/articles/2021-03-05/coinbase-coin-ipo-ceo-could-get-over-1-million-a-day-from-crypto-exchange?sref=LspfQlRv">Bloomberg calculated from company filings and news reports</a>. His stake in the company is worth $15 billion, the news site estimates.In 2020, Armstrong took home $56 million of stock option awards on top of a $1 million salary and another $1.8 million in reimbursement for legal and security fees, according to registration <a href="https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm#i86a9d9b35e45447ea6eb369e5dcf1e6a_55">documents</a>. Like peers including Elon Musk, the <a href="https://www.bloomberg.com/graphics/2020-highest-paid-ceos/">most well-payed CEO in the world </a>in recent years, Armstrong's pay day isn't a shoe-in. He'll need to shepherd the company through a <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-reclaims-50000-level-firms-eye-exposure-to-crypto-2021-3-1030145786">choppy cryptocurrency market</a>, and hit certain milestones along the way. What's more, his 9.3 million option grant doesn't even begin vesting until Coinbase's stock price hits $200 - up from a "fair value" award price of $23.49."We believe the performance conditions associated with the 2020 CEO Performance Award are extremely rigorous and appropriately align Mr. Armstrong's incentives with the interests of our stockholders," Coinbase said in its filing. His options fully vest at a roughly 1,600% price increase.Coinbase is set to hit public exchanges within weeks, when outside investors for the first time will value shares of the company. Luckily for Armstrong, the required price increases could be near: Axios <a href="https://www.axios.com/coinbase-valued-100-billion-direct-listing-9b43e316-7ff7-4f6a-a1db-4dc2481a93ee.html">reported</a> in February that Coinbase sold several tranches of stock totaling 1.8 million shares, going for as high as $303 each - a nearly 1200% increase from the option strike price.As traders await first trades, <keyword id="6354947" type="UNKNOWN" weightage="60" keywordseo="bitcoin">bitcoin</keyword> has continued to spike higher. The world's largest cryptocurrency surged as high as $57,000 last month before paring some of gains in recent weeks. A survey by Goldman Sachs <a href="https://markets.businessinsider.com/currencies/news/bitcoin-price-outlook-btc-goldman-sachs-client-survey-2021-3-1030155561">found</a> the bank's clients to be largely optimistic about the currency's future price, with 22% expecting it to double in the next year.

Coinbase's CEO is set to get a $3 billion windfall as his company goes public amid a cryptocurrency boom

<ul class="summary-list"><li><keyword id="11937113" type="UNKNOWN" weightage="60" keywordseo="joel-greenblatt" source="Orion">Joel Greenblatt</keyword>'s fund sold almost all of its <keyword id="11937112" type="UNKNOWN" weightage="60" keywordseo="gamestop" source="Orion">GameStop</keyword> and <keyword id="11911241" type="UNKNOWN" weightage="60" keywordseo="amc" source="Orion">AMC</keyword> shares before the meme-stock boom.</li><li><keyword id="11937114" type="UNKNOWN" weightage="60" keywordseo="gotham-asset-management" source="Orion">Gotham Asset Management</keyword> owned as many as 1.2 million GameStop shares and 550,000 AMC shares.</li><li>The value investor could have raked in $400 million if he hadn't slashed those holdings.</li></ul>Joel Greenblatt's Gotham Asset Management virtually eliminated its <a href="https://markets.businessinsider.com/stocks/gme-stock">GameStop</a> and <a href="https://markets.businessinsider.com/stocks/amc-stock">AMC Entertainment</a> stakes before the <a href="https://markets.businessinsider.com/news/stocks/reddit-day-traders-wallstreetbets-gamestop-gme-rally-upending-stock-market-2021-1">meme-stock frenzy</a>, missing out on a potential $400 million windfall.Greenblatt is Gotham's investing co-chief and teaches a value-investing class at Columbia University. His fund first bought into GameStop more than a decade ago, and grew its position in the video-game retailer to 1.2 million shares worth $41 million at the end of 2014, <a href="https://www.sec.gov/edgar/browse/?CIK=1510387">regulatory filings show</a>. However, it slashed that stake to fewer than 17,000 shares by the end of 2020.Gotham exited the position in the first quarter of this year, potentially selling its remaining shares for north of $5 million during the short squeeze. However, if it had kept its 1.2 million shares and sold them when GameStop's stock price hit $300 in January, it would have pocketed $370 million. If it had declined to sell, the stake would be worth $200 million today - an almost five-fold gain in under seven years.Greenblatt's fund also lost out on AMC. It owned around 550,000 of the cinema chain's shares worth about $9 million in mid-2018, but steadily reduced that position and only had 7,000 shares left as of June 30 this year. Left intact, its stake would have fetched as much as $34 million in June when AMC's stock peaked, and would be worth about $20 million today.Gotham's entire US stock portfolio was worth $2.4 billion at the end of June, and its largest positions were a $52 million stake in Microsoft and a $43 million stake in Amazon. As a result, a $400 million windfall from GameStop and AMC would have significantly boosted to its performance.Greenblatt wasn't the only value investor to miss out on the meme-stock boom this year. Bill Miller's fund, Miller Value Partners, <a href="https://markets.businessinsider.com/news/stocks/bill-miller-sold-gamestop-stock-missed-short-squeeze-windfall-2021-4">owned 1.7 million GameStop shares</a> at the end of 2015, but sold over 90% of them by the end of 2020. Its stake would have been worth over $270 million today.Similarly, <keyword id="11898782" type="UNKNOWN" weightage="60" keywordseo="michael-burry" source="Orion">Michael Burry</keyword> - the investor of "<keyword id="11930437" type="UNKNOWN" weightage="60" keywordseo="the-big-short" source="Orion">The Big Short</keyword>" fame who started his Scion Capital hedge fund in 2000 with seed money from Greenblatt - invested in GameStop in 2019, helping to <a href="https://markets.businessinsider.com/news/stocks/big-short-investor-michael-burry-scion-gamestop-stock-price-frenzy-2021-2">pave the way</a> for the short squeeze this year. He built his stake to 3.4 million shares by <a href="https://www.sec.gov/Archives/edgar/data/0001649339/000090514820000491/efc20-335_sc13d.htm">April 2020</a>, a holding worth $560 million today. However, he exited the position in the final quarter of 2020.

Value investor Joel Greenblatt slashed his GameStop and AMC stakes before the meme-stock boom, missing out on a potential $400 million windfall

<ul class="summary-list"><li>Warren Buffett's Berkshire Hathaway has scored a $13 billion gain on Chevron and Occidental stock.</li><li>Berkshire's energy bets cost it about $30 billion, and are now worth a combined $43 billion.</li></ul>Warren Buffett's <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a> has notched an estimated $13 billion gain on <a href="https://markets.businessinsider.com/stocks/cvx-stock">Chevron</a> and <a href="https://markets.businessinsider.com/stocks/oxy-stock#:~:text=According%20to%20the%20current%20price,from%20the%2052%2Dweek%20high.">Occidental Petroleum</a>, and now counts the two energy stocks among its biggest bets.The famed investor's conglomerate has piled <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-energy-stocks-oil-chevron-occidental-petroleum-2022-8">roughly $20 billion</a> into Chevron and <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-oil-energy-stocks-occidental-petroleum-stake-2022-9">around $10 billion</a> into Occidental, a Markets Insider analysis of Securities and Exchange Commission filings shows. Those positions are now worth $29 billion and $14 billion respectively, or $43 billion together, as of Monday's close.Berkshire established a stake in Chevron in the second half of 2020. It more than quadrupled its position in the first quarter of this year, and topped it up to 161 million shares, or 8.2% of the company, in the second quarter. The wager has paid off so far, as Chevron's stock price has surged 52% to an all-time high this year.In addition, Buffett and his team built a nearly 21% stake in Occidental from scratch this year, primarily in early March. They have scooped up 194 million shares to date, and Occidental stock has jumped 134% this year.At the same time, Berkshire owns $10 billion of preferred stock in Occidental, as well as warrants entitling it to buy another 83.9 million common shares at a fixed cost of $5 billion. Those shares would be worth $6.1 billion at the current stock price.Even excluding the preferred stock and warrants, Chevron and Occidental now rank among the most valuable positions in Berkshire's portfolio. Only five of the conglomerate's top 15 holdings were valued at north of $10 billion at the end of December, and only two above $25 billion.The fossil-fuel wagers stand out from Berkshire's biggest holdings, many of which are longtime Buffett favorites in the consumer-products and financial-services sectors. Those include Apple, Bank of America, Coca-Cola, Kraft Heinz, and American Express.Buffett and his team bought the lion's share of their Chevron and Occidental shares in late February and early March, suggesting they saw a chance to capitalize on the surge in energy prices sparked by Russia's invasion of Ukraine on February 24. Or they may have simply determined the two companies were <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-oil-energy-stocks-occidental-petroleum-stake-2022-9">undervalued</a>, well-managed, and good <a href="https://markets.businessinsider.com/news/stocks/charlie-munger-warren-buffett-berkshire-crypto-apple-chevron-market-speculation-2022-2">sources of income</a>.It's worth noting the Biden administration has accused major oil companies of "<a href="https://markets.businessinsider.com/news/commodities/biden-slams-big-oil-tax-war-profiteering-windfall-talks-2022-11">war profiteering</a>," and threatened them with a windfall tax if they don't use some of their outsized profits this year to invest in domestic production. That headwind could weigh on Chevron and Occidental shares going forward.For now, the two wagers are helping Berkshire to weather a tough market backdrop. While fears of inflation, recession, and further interest-rate hikes have pulled the S&amp;P 500 down 19% this year, Berkshire shares are only down 2%.Buffett might also see the pair of energy bets as a portfolio hedge against a broader market decline, and a way to offset the <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-inflation-labor-supply-chain-consumer-economy-2022-8">painful impact</a> of higher fuel costs on several of Berkshire's businesses."He wants that exposure to potential higher inflation, higher oil prices," Josh Young, a fund manager and specialist in energy stocks, <a href="https://www.theinvestorspodcast.com/episodes/why-buffett-is-investing-in-oil-companies-w-josh-young/">said</a> about Buffett's Occidental bet in August.Berkshire will reveal how much it spent on stocks last quarter, and which names it bought and sold, when it publishes its third-quarter earnings and portfolio update later this month.Read more: <a href="https://www.businessinsider.com/david-rubenstein-book-warren-buffett-carlyle-berkshire-key-investing-skills-2022-10">David Rubenstein sees Warren Buffett as the ultimate investor. The private equity billionaire lays out the 12 traits and habits that are key to Buffett's success.</a>

Warren Buffett's Berkshire Hathaway has scored about a $13 billion gain on Chevron and Occidental - and now the 2 energy stocks rank among its biggest bets

<ul class="summary-list"><li>The <keyword id="11898248" type="UNKNOWN" weightage="60" keywordseo="sp-500" source="Orion">S&amp;P 500</keyword> and the <keyword id="11909203" type="UNKNOWN" weightage="60" keywordseo="nasdaq-composite" source="Orion">Nasdaq Composite</keyword> were nearing new records on Tuesday. </li><li><keyword id="11893878" type="UNKNOWN" weightage="60" keywordseo="stocks" source="Orion">Stocks</keyword> extended gains after Monday's approval by the FDA of Pfizer's COVID-19 vaccine.</li><li>Investors are looking toward the Federal Reserve's policy symposium later this week. </li></ul>Stocks rose Tuesday, extending gains from the previous session during which the US drug regulator gave its first full approval to a COVID-19 vaccine, boosting expectations that more vaccinations will curb rising infections and lessen the threat to economic growth. The S&amp;P 500 was at the doorstep of a new record high as was the Nasdaq Composite. Stocks remained higher after the Food and Drug Administration on Monday approved <a href="https://markets.businessinsider.com/news/stocks/pfizer-biontech-stock-price-fda-approves-covid-vaccine-comirnaty-2021-8?utm_source=markets&amp;utm_medium=ingestgest">Pfizer's COVID-19 vaccine</a>. The move came ahead of Thursday's start of the Federal Reserve's virtual Jackson Hole, Wyoming, conference where Federal Reserve Chairman Jerome Powell is expected to outline the central bank's outlook on US economic recovery. Here's where US indexes stood at 9:30 a.m. on Tuesday: <ul><li><a href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestedium=ingest">S&amp;P 500</a>: 4,484.89, up 0.12%</li><li><a href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Dow Jones Industrial Average</a>: 35,397.15, up 0.17% (51.87 points)</li><li><a href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Nasdaq Composite</a>: 14,972.21, up 0.2%</li></ul>"We expect Powell to endorse the idea that [asset-purchase] tapering is likely to be announced later this year, with the important caveat that any prospective decision remains subject to uncertainties related to the pandemic and to the evolution of the labor market," Ryan Wang, a US economist at HSBC, wrote in a note Tuesday. "However, we think it less likely that he will spell out the precise timing just yet, since the [Federal Open Market] Committee did not appear to reach a consensus on this issue in July."Around the <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword>, value investor Joel Greenblatt slashed his GameStop and AMC stakes before the meme-stock boom, <a href="https://markets.businessinsider.com/news/stocks/joel-greenblatt-gotham-asset-management-gamestop-amc-meme-stocks-windfall-2021-8">missing out on a potential $400 million windfall</a>.A Swiss shoemaker backed by tennis legend Roger Federer <a href="https://markets.businessinsider.com/news/stocks/roger-federer-swiss-shoemaker-nyse-ipo-stock-market-debut-2021-8">plans to go public in New York</a> at a potential $8 billion valuation.<a href="https://markets.businessinsider.com/commodities/gold-price?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">Gold</a> picked up 0.1% to $1,806.94 per ounce. The yield on the US 10-year Treasury note edged up to 1.26%. Oil prices climbed. <a href="https://markets.businessinsider.com/commodities/oil-price?type=wti?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestm=ingest">West Texas Intermediate crude</a> rose 1.3% to $66.52 per barrel.<a href="https://markets.businessinsider.com/commodities/oil-price?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestce=markets&amp;utm_medium=ingest"> Brent crude</a>, oil's international benchmark, gained 1.5%, to $69.81 per barrel. <a href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> slipped 0.4% to $49,348.87.

You Searched For "windfall gains" and got 11 results

Paytm declares Q2 results, earns Rs 930 crore as windfall gains by way of sale of ticketing business to Zomato

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Adobe's misfortune may be a windfall for these 2 up-and-coming art apps

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No windfall gains to private insurers under PMFBY: Centre

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The number of billionaires grew by 13.4% in 2020 - making the pandemic a 'windfall to billionaire wealth'

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Elon Musk has a $2.5 billion reason to move to Texas: avoiding California capital gains tax

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In one day, Elon Musk made $37 billion and slammed Democrats' plan to tax billionaires. Here's what he meant when he said the government will 'come for you.'

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Coinbase's CEO is set to get a $3 billion windfall as his company goes public amid a cryptocurrency boom

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Value investor Joel Greenblatt slashed his GameStop and AMC stakes before the meme-stock boom, missing out on a potential $400 million windfall

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Warren Buffett's Berkshire Hathaway has scored about a $13 billion gain on Chevron and Occidental - and now the 2 energy stocks rank among its biggest bets

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US stocks edge higher as vaccine approval supports gains ahead of Fed's Jackson Hole meeting

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