All-In E30: Ramifications of Biden's proposed capital gains tax hike, founder psychology & more

Capital Gains Tax Discussion

• Biden proposes increasing capital gains tax from 20% to 39.6% for those earning over $1M
• Combined state/federal rates could reach 52.22% in NY and 56.7% in CA
• Chamath views it as largely performative, doubts it will pass in current form
• The group discussed potential economic impacts:
  • Could reduce investment in startups and early-stage companies
  • May push more investors to relocate to low-tax states
  • Chamath notes he would only invest $50M instead of $100M in a recent climate deal under these rules
  • Concerns about impact on entrepreneurship and capital formation

Founder Psychology

• Discussed characteristics of successful founders vs problematic ones
• David Sacks notes founders need to be more aggressive than average but there's a fine line before it becomes destructive
• Referenced examples like Mark Zuckerberg (analytical, controlled) vs more volatile founder personalities
• Group agreed the best founders combine strong intellectual capabilities with disciplined execution

Current Events

• Chauvin verdict: Group agreed justice was served, criticized political grandstanding around the trial
• India COVID crisis:
  • Cases surging past 300k per day, highest worldwide
  • Discussion of variants and vaccine efficacy
  • Called for US to assist with vaccine distribution

Media Criticism

• Group criticized media coverage of:
  • COVID variants and vaccine effectiveness
  • Violence/riots around Chauvin trial
  • J&J vaccine pause
• Argued coverage focuses too much on fear and ratings vs balanced reporting

SPACs Discussion

• Chamath provided update on SEC guidance around SPAC warrants
• Suggested reforms including requiring more sponsor skin in the game
• Notes that only 5% of SPAC sponsors put up significant capital currently