The Three Asset Tracks of the Wealth Tax

The Act doesn’t use one valuation method for everything. It separates wealth into three categories: (1) publicly traded assets, (2) sole proprietorships, and (3) all other interests in business entities — including equity, debt, and contractual rights. Each track has different valuation rules. The distinctions matter enormously in practice, particularly for founders and investors who hold a mix of public and private positions in the same company.

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